(Solution Download) ABC Company's current financial information (before/without expansion) Dec. 31,20X2 Dec....


ABC Company's current financial information (before/without expansion) Dec. 31,20X2 Dec. 31,20X1 Cash $50,000 $70,000 Accounts receivable (net) $120,000 $180,000 Merchandise inventory $350,000 $280,000 Property plant, & equipment $400,000 $300,000 Less: Accumulated depreciation $(170,000) $(100,000) Total assets $750,000 $730,000 Accounts payable $250,000 $210,000 Income taxes payable $40,000 $10,000 Common stock $240,000 $240,000 Retained earnings $220,000 $270,000 Total liabilities & stock, equity $750,000 $730,000 The firm's accrual-basis income statement revealed the following data: Sales $1,200,000 Cost of goods sold $800,000 selling and administrative expenses $250,000 Depreciation expense $70,000 Income taxes $30,000 Dividends declared and paid during 20X2 $100,000 ABC purchased $100,000 of equipment for cash on August 14, 20X2 (There was no interest expense.) Based on Chapter 5's exercise 5 ABC's Product information Current Product Selling Price Units produced and expected to be sold Machine Hours Direct Materials Direct labor dollars needed per product Variable Factory Overhead Variable Selling Expense Total Fixed Costs: Fixed Factory Overhead Fixed Selling expenses Expansion Product (estimate) $14.50 ? 80,000 40,000 $1.30 per unit $2.80 per unit $1.00 per Machine Hour $0.20 per unit $198,000 $191,250 5,000 5,000 $5.60 per unit $4.00 per unit $1.00 per Machine Hour $0.20 per unit

 







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