Allscott Company Is Developing Its Budgets for 2019 And,for the First

question 72

Essay

Allscott Company 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:



Selling prices for 2019 are expected to increase by 8%,and sales volume in units will decrease by 10%.The cost of goods sold as estimated by the kaizen approach will decline by 10% per unit.Other than depreciation,all other operating costs are expected to decline by 5%.
Required:
Prepare a kaizen-based budgeted income statement for 2019.

---

Definitions:

Sinus

A hollow, cavity, or channel within the body, often referring to the air-filled spaces in the skull that open into the nasal cavity.

Appendicular Skeleton

The portion of the skeleton of vertebrates consisting of the bones that support the appendages (limbs), including the shoulder and pelvic girdles.

Vertebrae

The individual bones that make up the vertebral column (spine), providing structural support and protecting the spinal cord.

Actin Filaments

Actin filaments are thin, flexible fibers found in all eukaryotic cells, playing key roles in cell movement, shape, and structure by forming part of the cytoskeleton.