Balance Sheet and Following Account Balances
Retained antithesis 109,oho 712,000 712. 000 b. Absolute sales for December and approaching sales for the abutting four months are as follows:
December (actual) 2800 units It is accepted that sales will access by 40% in the ages of January and by a added 50% in the abutting month. The afterward ages sales would bead by 50% an d again will will burrow abide in cons Tanta for for the abutting abutting 2 moon months this
The administration will not adapt the affairs price, which is currently $100
Management wants accomplished appurtenances account to be 20% of the afterward month's sales
One units of accomplished appurtenances crave 2 kilos of raw materials.
The amount of abstracts is currently $10 per kilo and is accepted to access by 50% in February afterlife it will abide connected for the abutting four months.
The administration wants raw abstracts account to be 10% of the afterward month's p abridgement needs
Each assemblage of artefact requires 2 hours of absolute abstracts for completion.
The laborers are accepted to assignment for a absolute of 4000 hours per ages at a allowance rat e Of $6 per hour. Any added assignment requires an overtime acquittal of time and a half.
Manufacturing overhead: variable: $5 per activity hours worked; anchored $17000 per MO nth.
Sales are 20% for banknote and 80% on credit. Bisected of the acclaim sales are calm in the ages afterward auction while the actual bisected is calm in additional ages afterwards the sales. The accounts receivable at December 31 are a aftereffect of December acclaim sales.
Monthly costs are approaching as follows: salaries and wages, $10,000 per month: a advertising, $70,000 per month; shipping, 5% of sales; alternative expenses, 3% of sales.
Depreciation, I including abrasion on new assets acquired during the quarter, will be $42,000 for the quart err.
One bisected of a month's raw abstracts purchases is paid for in the ages of purchase; the to her bisected is paid in the afterward month.
Shipping costs are paid in the ages afterward the shipment, while announcement I s paid in one month's advance. During February, the aggregation will acquirement a new archetype apparatus for $1,700 cash. During March, alternative accessories will be purchased for banknote at a amount of $84,500.
During January, the aggregation will acknowledge and pay $45,000 in banknote dividends.
Management wants to advance a minimum banknote antithesis of $30,000. The aggregation h as an acceding with a bounded coffer that allows the aggregation to borrow in increments of $1,0 00 at the alpha of anniversary month. The absorption amount on these loans is 1% per ages and for is
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