Business brief

Action Items 1. Analyze the results of the Busin" rel="nofollow">iness Brief Problem completed in" rel="nofollow">in Action Item 4. 2. Write a one-page analysis accordin" rel="nofollow">ing to the Busin" rel="nofollow">iness Brief Guidelin" rel="nofollow">ines. Complete sentences must be used (bullets are not acceptable). Your analysis must be written usin" rel="nofollow">ing a concise writin" rel="nofollow">ing style. Your Busin" rel="nofollow">iness Brief should in" rel="nofollow">incorporate all of followin" rel="nofollow">ing in" rel="nofollow">instructions: a. An openin" rel="nofollow">ing paragraph briefly in" rel="nofollow">introducin" rel="nofollow">ing the problem situation. b. Analysis header - The analytical section should in" rel="nofollow">include a discussion of the problem results as identified in" rel="nofollow">in the problem requirements. c. Conclusion header - This section should be based on the analytical requirement(s) that solicit your opin" rel="nofollow">inion regardin" rel="nofollow">ing the problem. You should provide only key, relevant in" rel="nofollow">information and logical discussion in" rel="nofollow">in support of your opin" rel="nofollow">inion. d. APA citation(s) and reference(s). Requirement 1. Prepare budgeted in" rel="nofollow">income statements for both options assumin" rel="nofollow">ing January sales remain" rel="nofollow">in $ 8 comma 000$8,000. Begin" rel="nofollow">in by preparin" rel="nofollow">ing the budgeted in" rel="nofollow">income statement for Option 1. (Round all amounts to the nearest whole number.) Holly Company Budgeted Income Statement For the Quarter Ended March 31, 2016 January February March Total Sales Revenue $8,000 $10,400 $13,520 $31,920 Cost of Goods Sold 3,200 4,160 5,408 12,768 Gross Profit 4,800 6,240 8,112 19,152 S and A Expenses 4,100 4,340 4,652 13,092 Operatin" rel="nofollow">ing Income 700 1,900 3,460 6,060 Income Tax Expense 210 570 1,038 1,818 Net Income $490 $1,330 $2,422 $4,242 Now prepare the budgeted in" rel="nofollow">income statement for Option 2. (Round all amounts to the nearest whole number.) Holly Company Budgeted Income Statement For the Quarter Ended March 31, 2016 January February March Total Sales Revenue $8,000 $10,400 $13,520 $31,920 Cost of Goods Sold 3,600 4,680 6,084 14,364 Gross Profit 4,400 5,720 7,436 17,556 S and A Expenses 2,800 3,040 3,352 9,192 Operatin" rel="nofollow">ing Income 1,600 2,680 4,084 8,364 Income Tax Expense 480 804 1,225 2,509 Net Income $1,120 $1,876 $2,859 $5,855 Requirement 2. Which option should Holly choose? Explain" rel="nofollow">in your reasonin" rel="nofollow">ing. If one of the two options is chosen, it would be Option 2 because net in" rel="nofollow">income for the quarter is expected to be higher under this option than the other. However, because both options are expected to yield lower net in" rel="nofollow">income for the quarter than the $ 5 comma 992$5,992 currently budgeted, Holly may decide not to choose either of the options.