Total return on sales at December 20X5 was:
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![Seaforce Manufacturing Inc.
Income Statement
Year Ended December 31, 20X5
Sale
Cost of goods sold
Gross Profit
Operating Expenses
Loss on Sale of equipment
Profit from Operations
Other expenses
Interest Expense
Profit before Income Tax
Income Tax Expense
Profit
Additional Information:
$55,000
$ 2,500
$340,000
$250, 100
$ 89,900
$ 57,500
$ 32,400
$ 3,500
$ 28,900
$ 12,000
$ 16,900
1. Operating expenses include depreciation expense of $10,000
2. Accounts Payable related to the purchase of inventory
3. Equipment that cost $12,500 was sold at a loss of $2,500
4. New equipment was purchased during the year for $8,500
5. Dividends declared and paid in 20X5 totalled $3,000
6. Common shares were sold for $12,000 cash
7. Interest payable in 20X5 was $800 greater than interest payable in 20X4
Seaforce Manufacturing Inc. comparative balance sheet at December 31 20X5](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04536e59-763c-440c-af8f-4a3fc9711a35%2F8e0777fc-12a1-41d2-a054-8aae66ad7b1c%2Ffeaif6_processed.png&w=3840&q=75)
![Seaforce Manufacturing Inc. comparative balance sheet at December 31 20X5
Cash
Accounts Receivable
Inventory
Prepaid Expenses
Equipment
Accumulated Depreciation - equipment
Total Assets
Account Payable
Interest Payable
Income taxes payable
Dividends Payable
Long-term Notes Payable
Common shares
Retained Earnings
Total Liabilities & Shareholders' Equity
20X5
$ 6,450
$ 72,000
$110,250
$1,750
Total return on sales at December 20X5 was:
$ 96,000
$(50,000)
$236,450
20X4
$ 4,100
$ 6,500
$140,000
$ 1,020
$100,000
$(42,000)
$209,620
$ 16,230
$ 9,900
$
10
$ 810
$ 10,800
$ 9,500
$ 1,800
$ 2,800
$ 55,000
$135,000
$ 62,000
$123,000
$ 16,310 $ 2,410
$209,620
$236,450
Round answers to fit 2 decimal places in all questions (in % questions a 0.12 is presented as 12%, so a 0.124 is rounded as 12% and 0.127 is rounded as
13%)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04536e59-763c-440c-af8f-4a3fc9711a35%2F8e0777fc-12a1-41d2-a054-8aae66ad7b1c%2Fdhmyzvt_processed.png&w=3840&q=75)
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