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Phase 3 Group Project

# Phase 3 Group Project - Analysis By...

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Phase 3 Task 2 Group Project By: Claudia Pelaez, Lorraine Ritch, Nakesha Simmons, & Alisha Williams Income Statement and Balance Sheet  Analysis

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Revenue 2005 Budget 2005 Variance Over/under Budget Sales \$5,050,000 \$5,220,000 \$170,000 Under Sales Discounts \$50,000 \$20,000 \$30,000 Over Net Sales \$5,000,000 \$5,200,000 \$200,000 Under
Equity 2005 Budget 2005 Variance Over/under Budget Owner’s Equity \$1,600,000 \$1,600,000 none n/a Retained Earnings \$73,000 \$71,000 \$2,000 Over Total Owner’s  Equity \$1,673,000 \$1,671,000 \$2,000 Over

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Cost of goods sold Cost of goods in  2005  = \$3,255,700 Cost of goods in  budgeted 2005  = \$3,342,500 The variance is = \$3,342,500- \$3,255,700. Difference of \$86,800
Gross margin Margin for  2005 - \$ 1,744,300 Budget for 2005-  \$1,857,500 Failed to meet budget by  \$113,200 Variance of 1,857,500-1,744,300 = \$113,200

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INCOME STATEMENT "EXPENSES" VARIANCE  ANALYSIS . 2005 BUDGET 2005 OVER BUDGET UNDER BUDGET EXPENSES Depreciation \$150,000 \$150,000 \$0 \$0 Salaries \$95,000 \$85,000 -\$10,000 Office and Warehouse rent \$50,000 \$50,000 \$0 \$0 Bad debt expense \$21,000 \$20,000 -\$1,000 Supplies \$6,000 \$5,000 -\$1,000 Miscellaneus \$3,000 \$3,000 \$0 \$0 TOTAL EXPENSES \$325,000 \$313,000 -\$12,000 SUNSHINEGROVE INCOMESTATEMENT "EXPENSES" VARIANCEANALYSIS
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