Answer the Following Question(s)using the Information Below

question 171

Essay

Answer the following question(s)using the information below.Sherry and John Enterprises are using the Kaizen approach to budgeting for 2019.The budgeted income statement for January 2019 is as follows:
Under the Kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 1% per month.
-Brad Corporation is developing its budgets for 2019 and for the first time will use the Kaizen approach.The initial 2019 income statement, based on static data from 2018, is as follows:
Under the Kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 12%.Required:
Prepare a Kaizen-based budgeted income statement for March of 2019.

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Definitions:

Vesicular Basalt

A type of igneous rock characterized by a porous structure due to gas bubbles trapped in the lava during solidification.

Pillow Basalts

Pillow basalts are bulbous, spherical lava formations created when lava erupts underwater or flows into water, rapidly cooling and solidifying.

Composite Volcano

A type of volcano formed by the eruption of viscous lava along with ash and rock, characterized by steep profiles and periodic, explosive eruptions.

Scoria Cone

A small, steep volcanic cone formed from fragments of lava ejected during explosive volcanic eruptions.