Final Paper Spreadsheet

copy_of_final_paper_spreadsheet.xlsx

Sources of the information

For part 1:

Source of Problem Data: Info is from Ch 1, problem 5

For Part II.

Based on Chapter 5's exercise 5

For Part III.

Based on Chapter 8's exercise 3

Source of Problem Data: Info is from Ch 1, problem 5
ABC Company's current financial information (before/without expansion)
	Dec. 31,19X2	Dec. 31,19X1
Cash	$ 5,000	$ 7,000
Accounts receivable (net)	$ 12,000	$ 18,000
Merchandise inventory	$ 35,000	$ 28,000
Property plant, & equipment	$ 40,000	$ 30,000
Less: Accumulated depreciation	$ (17,000)	$ (10,000)
Total assets	$ 75,000	$ 73,000
Accounts payable*	$ 25,000	$ 21,000
Income taxes payable	$ 4,000	$ 1,000
Common stock	$ 24,000	$ 24,000
Retained earnings	$ 22,000	$ 27,000
Total liabilities & stock, equity	$ 75,000	$ 73,000
The firm's accrual-basis income statement revealed the following data:
Sales	$ 120,000
Cost of goods sold	$ 80,000
selling and administrative expenses	$ 25,000
Depreciation expense	$ 7,000
Income taxes	$ 3,000
Dividends declared and paid during 19X2	$ 10,000
ABC purchased $10,000 of equipment for cash on August 14.
(There was no interest expense.)

Based on Chapter 5's exercise 5
ABC's Product information
	Current Product	Expansion Product (estimate)
Selling Price	$12.00	?
Units produced and expected to be sold	80,000	5,000
Machine Hours	40,000	5,000
Direct Materials	$1.30 per unit	$5.60 per unit
Direct labor dollars needed per product	$2.80 per unit	$4.00 per unit
Variable Factory Overhead	$1.00 per Machine Hour	$1.00 per Machine Hour
Variable Selling Expense	$0.20 per unit	$0.20 per unit
Total Fixed Costs:
Fixed Factory Overhead	$ 198,000
Fixed Selling expenses	$ 191,250