Questions
1. Prepare a projected statement of cost of goods sold for 2010, a projected income statement for 2010, and a projected balance sheet as of December 31, 2010.
(Hint : Set up T accounts corresponding to the 2009 balance sheet accounts. Post the budgeted transactions to the accounts. Use the inventory T accounts to prepare the projected cost of goods sold statement and the retained earnings T account to prepare the income statement.)
2. Describe the principal differences between the 2010 estimates and the 2009 figures as shown in Exhibits 1,2, and 3. In what respects is 2010 performance expected to be better than 2009 performance, and in what respects is it expected to be worse?
3. Does the budget indicate that management will achieve its note payable repayment goal? If not, what do you suggest they do to achieve their minimum objective?
Questions1. Prepare a projected statement of cost of goods sold for 2010, a projected income statement for 2010, and a projected balance sheet as of December 31, 2010.(Hint : Set up T accounts corresponding to the 2009 balance sheet accounts. Post the budgeted transactions to the accounts. Use the inventory T accounts to prepare the projected cost of goods sold statement and the retained earnings T account to prepare the income statement.)2. Describe the principal differences between the 2010 estimates and the 2009 figures as shown in Exhibits 1,2, and 3. In what respects is 2010 performance expected to be better than 2009 performance, and in what respects is it expected to be worse?3. Does the budget indicate that management will achieve its note payable repayment goal? If not, what do you suggest they do to achieve their minimum objective?
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