Author Question: After net income is entered on the end-of-period spreadsheet, the Balance Sheet Debit and Credit ... (Read 47 times)

cookcarl · **on:** Jul 5, 2018

After net income is entered on the end-of-period spreadsheet, the Balance Sheet Debit and Credit columns must
a. be the same amount as the total amount of the Income Statement Debit and Credit columns
b. equal each other
c. be the same amount as the total amount in the Adjusted Trial Balance Debit and Credit columns
d. not be equal to each other and need not be the same total amounts as any other pair of columns on the work sheet

Question 2

What is budgeted sales for 2016?

Violet Sales Corp, reports the year-end information from 2016 as follows:

Sales (35,000 units) 280,000
Cost of goods sold 105,000
Gross margin 175,000
Operating expenses 150,000
Operating income 25,000

Violet is developing the 2016 budget. In 2016 the company would like to increase selling prices by 3.5, and as a result expects a decrease in sales volume of 15. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost.

A) 291,200
B) 246,330
C) 302,400
D) 322,000