The items I need are the Income Statement, Cash-flow statement and the Written Components with three references, APA style, U.S.A., no more than 10 years old.

income_statement.xlsx

Home >Business & Finance homework help >Accounting homework help >The items I need are the Income Statement, Cash-flow statement and the Written Components with three references, APA style, U.S.A., no more than 10 years old.

Income Statement

	Income Statement			Calculations
JointsOrtho Company
January - December 2015
Revenue
Gross Sales		452,025,000		# of hips sold * price = monthy revenue Sum all 12 months
Net Sales			452,025,000
Cost of Goods Sold
Materials		4,000,000
Cost of Goods Sold			4,000,000	1000000 worth of raw materials every three months
Gross Profit (Loss)			448,025,000
Expenses
Advertising		9,040,500		(Jan , Feb, March) revenue * .02 + (Apr, May, June) revenue * .02 + (July, Aug, Sept) revenue * .02 + (Oct, Nov, Dec) * .02
Depreciation				NEED SALVAGE VALUE TO CALCULATE FOR BUILDING AND MACHINERY
Employee Benefits Program		645,171		53314.29 a month * 12= 639771.48 + 5400 (gym memberships for a year)= 645171.48
Interest Expense		550,000		6000000/12 = 500000 year which leaves 5500000 remaining, therefore 5500000*.10= 550000
Office Expense		15,000		one time set up cost
Salaries/Wages		2,161,371		177714.29 a month *12 = 2132571.48 + 28800 (truck driver yearly) = 2161371.48
Taxes		56,955,150		Multiplies revenue for each month by .126 and added the products of all 12 months
Telephone/Utitlities		14,400		1200 a month * 12 = 14,400
Vehicle Expenses		225,075		15000 a month *12= 180,000+ 75(yearly license fee)= 180,075 + 45000 for the truck = 225075
Total Expenses
Net Income (Loss)

Transaction

Month	Transaction #		Repeat?	Balance Sheet	Cash Flow	Income Statement	Additional Info
January	1	Borrow $6,000,000 for building with 10 year mortgage at 10% annum	No	Add to Liabilities	Outflow		Can include FV of investment and NPV in paper	n/a
	2	Pay manager monthly salary of $6,000 per month	Yes, every month		Outflow	Expense
	3	Pay for building: set up what will be office space, manufacturing space and warehouse space. Set a depreciation schedule, How much percentage of depreciation per year? Set up cost will be $15,000 for January but it won't repeat every month	Yes, every month, at the end of every month	Increase asset of building but decrease cash, decrease liabilities	Outflow	Expesnse	Straightline depreciation over 10 years; Most nonresidential property has recovery period of about 39 years (so almost 40). Since we're doing depreciation for 10 years, I'm going to assume the salvage value of the building after 10 years will be 75% of $6,000,000 = which is $4,500,000. So depreciation cost for 10 years would be $1,500,000. 1/10 years = 10% depreciation per year. 10% X $1,500,000 = $150,000 per year depreciation. $1,500,000/12 months = $12,500 per month. Nonresidential real property with with 39 years recovery period https://www.irs.gov/publications/p946/ch04.html
	4	Hire managers and employees; pay fringe benefits of $10 per month for gym membership for 45 employees. Total of $450 per month	Yes, every month		Outflow	Expense
	5	Pay employee health, life, and disability premiums, plus FICA, unemployment and withholding taxes. Total amount paid for benefits per month for all employees $53,314.29 (calculations is on sheet 3)	Yes, every month		Outflow	Expense	According to BLS, wages and salaries make up 70% of total compensation while benefits such as paid leave, supplemental pay, health insurance benefits, retirement and savings, and other legally required benefits make up 30% of total compensation. I did the math on the third sheet http://www.bls.gov/news.release/ecec.nr0.htm
	6	Order $3,000,000 worth of machinery/equipment for manufacturing. Pay ½ down.		Increase receivables of equipment, increase liabitily with half being account payable	Outflow - investing activities $1,500,000	Expense
	7	Receive machines and pay remaining amount due		Turn receivable to assets, increase liability decrease account payable	Outflow - investing activities the other $1,500,000	Expense
	8	Hire employees - Expense 1st month's salary/wages (can be found on sheet "Transaction 5") EXCLUDE MANAGER WAGE, set up machinery depreciation, set up standing costs	Yes, every month		Outflow	Expense	Straightline depreciation; standing costs mean fixed costs - so depreciation over the years and monthly wages; Depreciation will also be set for 10 years, I'm assumng salvage value will be $500,000. With straightline, depreciation cost would be $2,500,000/10 years $250,000 per year; $20,833.33 per month; will be recorded in transaction 12
	9	Place order for raw materials at a cost of $1,000,000 which will include Machining, Casting, Grinding, Polishing, and metal injection molding materials (will be ordered every 3 months)	Yes, every 3 months (Jan, April, July, Oct)	Increase receivable, increase account payable	Outflow	Expense
	10	Receive 3 month supply of raw materials	Yes, every 3 months (Jan, April, July, Oct)	Increase asset, decrease receivable
	11	Start up prodution, pay workers for the month					same as Transaction #8, so maybe skip?
	12	Book depreciation (for machine and equipment?) and other manufacturing overhead costs for the month; property taxes $6,000,000 worth is .666% which is $39,960 per year https://smartasset.com/taxes/delaware-property-tax-calculator#DRWtQPKLqt Major coporation can pay up to $500,000 per year on insurance and lability, so I'm assuming we're paying about $240,000 per year ($20,000 per month) since it's a manufacturing company and have 45 people. https://www.trustedchoice.com/business-insurance/compare-coverage/cost/	Yes, every month	manufacturing overhead is included in Work in Progress and Finished Goods Inventory		Cost of Goods Sold	manufacturing overhead includes depreciation on machine, people who clean the manufacturing area, and people who perform maintenance on equipment, Insurance and property taxes on the manufacturing equipment and facilities.
	13	Finish manufacturing 2,000 hips and move them into finished goods inventory		increase inventories, decrease cost of good solds	cost of good sold?
	14	Pay for the 3 month supply of raw materials received in Transaction 10	Yes, every 3 months (Jan, April, July, Oct)	Decrease payable, increase liabilities	Outflow	Expense
	16	Take an order for 1,200 hip replacements		Reduce current inventory of 2,000 hips
	17	Ship and invoice customer for 1,200 hip replacements		Decrease inventory, increase account receivable
	18	Receive payment for 1,200 hip replacements (1,200 X $36,750 = $44,100,000)		Decrease account receivable, increase cash	Inflow	Income
	New 3	Sales tax (.126% of goods solds per month of gross receipts - total receipt for goods sold) - this is for all businesses in DE. we're technically not a corporation in DE so we're not subject to the 8.7% federal taxable income. http://revenue.delaware.gov/services/current_bt/cra.pdf	Yes, every month		Outflow	Expense
	New 5	Hire truck driver with Class A CDL driver for East Cost and pay $20/hour for 30 hours a week (they might not need to drive all the time)	Yes, every month		Outflow	Expense		*
	New 6	Buy a commercial truck for $45,000 http://www.commercialtrucktrader.com/		Increase Asset, Increase Liabilities	Outflow	Expense
	New 7	Total expense/cost for the truck $15,000 per month ($180,000 per year which includes maintenance, gas, insurance, etc.) http://www.drivebigtrucks.com/trucking-news/the-real-operating-cost-of-a-commercial-truck/	Yes, every month		Outflow	Expense
	New 8	Telephone, utlities bill $1,200 per month, in DE, it's estimated to be around $600 per month for regular commercial https://www.eia.gov/electricity/sales_revenue_price/pdf/table5_b.pdf	Yes, every month	payable http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/balance-sheet-components-liabilities.asp	Outflow	Expense
February	2	Pay manager monthly salary of $6,000 per month	Yes, every month		Outflow	Expense
	3	Depreciation of building	Yes, every month	Depreciation Loss	Outflow	Expesnse
	4	Hire managers and employees; pay fringe benefits of $10 per month for gym membership for 45 employees. Total of $450 per month	Yes, every month		Outflow	Expense
	5	Pay employee health, life, and disability premiums, plus FICA, unemployment and withholding taxes. Total amount paid for benefits per month for all employees $53,314.29 (calculations is on sheet 3)	Yes, every month		Outflow	Expense
	8	Hire employees - Expense 1st month's salary/wages (can be found on sheet "Transaction 5") EXCLUDE MANAGER WAGE, set up machinery depreciation, set up standing costs - pay wages	Yes, every month	Depreciaiton Loss	Outflow	Expense
	12	Book depreciation and other manufacturing overhead costs for the month	Yes, every month
	16-18	Manufacture and month's supply of hip replacements - create 1,500 hips, sold 1,000 hips
	New 3	Sales tax (.126% of goods solds per month of gross receipts - total receipt for goods sold) - this is for all businesses in DE. we're technically not a corporation in DE so we're not subject to the 8.7% federal taxable income. http://revenue.delaware.gov/services/current_bt/cra.pdf	Yes, every month		Outflow	Expense
	New 5	Hire truck driver with Class A CDL driver for East Cost and pay $20/hour for 30 hours a week (they might not need to drive all the time)	Yes, every month		Outflow	Expense
	New 7	Total expense/cost for the truck $15,000 per month ($180,000 per year which includes maintenance, gas, insurance, etc.) http://www.drivebigtrucks.com/trucking-news/the-real-operating-cost-of-a-commercial-truck/	Yes, every month		Outflow	Expense
	New 8	Telephone, utlities bill $1,200 per month, in DE, it's estimated to be around $600 per month for regular commercial https://www.eia.gov/electricity/sales_revenue_price/pdf/table5_b.pdf	Yes, every month	payable http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/balance-sheet-components-liabilities.asp	Outflow	Expense
March	2	Pay manager monthly salary of $6,000 per month	Yes, every month		Outflow	Expense
	3	Depreciation of building	Yes, every month	Depreciation Loss	Outflow	Expesnse
	4	Hire managers and employees; pay fringe benefits of $10 per month for gym membership for 45 employees. Total of $450 per month	Yes, every month		Outflow	Expense
	5	Pay employee health, life, and disability premiums, plus FICA, unemployment and withholding taxes. Total amount paid for benefits per month for all employees $53,314.29 (calculations is on sheet 3)	Yes, every month		Outflow	Expense
	8	Hire employees - Expense 1st month's salary/wages (can be found on sheet "Transaction 5") EXCLUDE MANAGER WAGE, set up machinery depreciation, set up standing costs - pay wages	Yes, every month	Depreciaiton Loss	Outflow	Expense
	12	Book depreciation and other manufacturing overhead costs for the month	Yes, every month
	16-18	Manufacture and month's supply of hip replacements - create 1,700hips, sold 1,100 hips
	New 1	Advertising and promotions 2% of revenue (since we said 8% per year)	Yes, every quarter		Outflow	Expense
	New 3	Sales tax (.126% of goods solds per month of gross receipts - total receipt for goods sold) - this is for all businesses in DE. we're technically not a corporation in DE so we're not subject to the 8.7% federal taxable income. http://revenue.delaware.gov/services/current_bt/cra.pdf	Yes, every month		Outflow	Expense
	New 5	Hire truck driver with Class A CDL driver for East Cost and pay $20/hour for 30 hours a week (they might not need to drive all the time)	Yes, every month		Outflow	Expense
	New 7	Total expense/cost for the truck $15,000 per month ($180,000 per year which includes maintenance, gas, insurance, etc.) http://www.drivebigtrucks.com/trucking-news/the-real-operating-cost-of-a-commercial-truck/	Yes, every month		Outflow	Expense
	New 8	Telephone, utlities bill $1,200 per month, in DE, it's estimated to be around $600 per month for regular commercial https://www.eia.gov/electricity/sales_revenue_price/pdf/table5_b.pdf	Yes, every month	payable http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/balance-sheet-components-liabilities.asp	Outflow	Expense
April	2	Pay manager monthly salary of $6,000 per month	Yes, every month		Outflow	Expense
	3	Depreciation of building	Yes, every month	Depreciation Loss	Outflow	Expesnse
	4	Hire managers and employees; pay fringe benefits of $10 per month for gym membership for 45 employees. Total of $450 per month	Yes, every month		Outflow	Expense
	5	Pay employee health, life, and disability premiums, plus FICA, unemployment and withholding taxes. Total amount paid for benefits per month for all employees $53,314.29 (calculations is on sheet 3)	Yes, every month		Outflow	Expense
	8	Hire employees - Expense 1st month's salary/wages (can be found on sheet "Transaction 5") EXCLUDE MANAGER WAGE, set up machinery depreciation, set up standing costs - pay wages	Yes, every month	Depreciaiton Loss	Outflow	Expense
	9	Place order for raw materials at a cost of $1,000,000 which will include Machining, Casting, Grinding, Polishing, and metal injection molding materials (will be ordered every 3 months)	Yes, every 3 months (Jan, April, July, Oct)	Increase receivable, increase account payable	Outflow	Expense
	10	Receive 3 month supply of raw materials	Yes, every 3 months (Jan, April, July, Oct)	Increase asset, decrease receivable
	12	Book depreciation and other manufacturing overhead costs for the month	Yes, every month
	14	Pay for the 3 month supply of raw materials received in Transaction 10	Yes, every 3 months (Jan, April, July, Oct)	Decrease payable, increase liabilities	Outflow	Expense
	16-18	Manufacture and month's supply of hip replacements - create 2,000 hips, sold 1,200 hips
	New 3	Sales tax (.126% of goods solds per month of gross receipts - total receipt for goods sold) - this is for all businesses in DE. we're technically not a corporation in DE so we're not subject to the 8.7% federal taxable income. http://revenue.delaware.gov/services/current_bt/cra.pdf	Yes, every month		Outflow	Expense
	New 5	Hire truck driver with Class A CDL driver for East Cost and pay $20/hour for 30 hours a week (they might not need to drive all the time)	Yes, every month		Outflow	Expense
	New 7	Total expense/cost for the truck $15,000 per month ($180,000 per year which includes maintenance, gas, insurance, etc.) http://www.drivebigtrucks.com/trucking-news/the-real-operating-cost-of-a-commercial-truck/	Yes, every month		Outflow	Expense
	New 8	Telephone, utlities bill $1,200 per month, in DE, it's estimated to be around $600 per month for regular commercial https://www.eia.gov/electricity/sales_revenue_price/pdf/table5_b.pdf	Yes, every month	payable http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/balance-sheet-components-liabilities.asp	Outflow	Expense
May & June	2	Pay manager monthly salary of $6,000 per month	Yes, every month		Outflow	Expense
	3	Depreciation of building	Yes, every month	Depreciation Loss	Outflow	Expesnse
	4	Hire managers and employees; pay fringe benefits of $10 per month for gym membership for 45 employees. Total of $450 per month	Yes, every month		Outflow	Expense
	5	Pay employee health, life, and disability premiums, plus FICA, unemployment and withholding taxes. Total amount paid for benefits per month for all employees $53,314.29 (calculations is on sheet 3)	Yes, every month		Outflow	Expense
	8	Hire employees - Expense 1st month's salary/wages (can be found on sheet "Transaction 5") EXCLUDE MANAGER WAGE, set up machinery depreciation, set up standing costs - pay wages	Yes, every month	Depreciaiton Loss	Outflow	Expense
	12	Book depreciation and other manufacturing overhead costs for the month	Yes, every month
	16-18	Manufacture and month's supply of hip replacements - For May - create 1,200 hips, sold 1,000 hips; For June - create 1,500 hips, sold 800 (vacation time, people go through less surgery)
	New 1	Advertising and promotions 2% of revenue (since we said 8% per year)	Yes, every quarter		Outflow	Expense
	New 3	Sales tax (.126% of goods solds per month of gross receipts - total receipt for goods sold) - this is for all businesses in DE. we're technically not a corporation in DE so we're not subject to the 8.7% federal taxable income. http://revenue.delaware.gov/services/current_bt/cra.pdf	Yes, every month		Outflow	Expense
	New 5	Hire truck driver with Class A CDL driver for East Cost and pay $20/hour for 30 hours a week (they might not need to drive all the time)	Yes, every month		Outflow	Expense
	New 7	Total expense/cost for the truck $15,000 per month ($180,000 per year which includes maintenance, gas, insurance, etc.) http://www.drivebigtrucks.com/trucking-news/the-real-operating-cost-of-a-commercial-truck/	Yes, every month		Outflow	Expense
	New 8	Telephone, utlities bill $1,200 per month, in DE, it's estimated to be around $600 per month for regular commercial https://www.eia.gov/electricity/sales_revenue_price/pdf/table5_b.pdf	Yes, every month	payable http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/balance-sheet-components-liabilities.asp	Outflow	Expense
July	2	Pay manager monthly salary of $6,000 per month	Yes, every month		Outflow	Expense
	3	Depreciation of building	Yes, every month	Depreciation Loss	Outflow	Expesnse
	4	Hire managers and employees; pay fringe benefits of $10 per month for gym membership for 45 employees. Total of $450 per month	Yes, every month		Outflow	Expense
	5	Pay employee health, life, and disability premiums, plus FICA, unemployment and withholding taxes. Total amount paid for benefits per month for all employees $53,314.29 (calculations is on sheet 3)	Yes, every month		Outflow	Expense
	8	Hire employees - Expense 1st month's salary/wages (can be found on sheet "Transaction 5") EXCLUDE MANAGER WAGE, set up machinery depreciation, set up standing costs - pay wages	Yes, every month	Depreciaiton Loss	Outflow	Expense
	9	Place order for raw materials at a cost of $1,000,000 which will include Machining, Casting, Grinding, Polishing, and metal injection molding materials (will be ordered every 3 months)	Yes, every 3 months (Jan, April, July, Oct)	Increase receivable, increase account payable	Outflow	Expense
	10	Receive 3 month supply of raw materials	Yes, every 3 months (Jan, April, July, Oct)	Increase asset, decrease receivable
	12	Book depreciation and other manufacturing overhead costs for the month	Yes, every month
	14	Pay for the 3 month supply of raw materials received in Transaction 10	Yes, every 3 months (Jan, April, July, Oct)	Decrease payable, increase liabilities	Outflow	Expense
	16-18	Manufacture and month's supply of hip replacements - create 1,000 hips, sold 800 hips
	New 3	Sales tax (.126% of goods solds per month of gross receipts - total receipt for goods sold) - this is for all businesses in DE. we're technically not a corporation in DE so we're not subject to the 8.7% federal taxable income. http://revenue.delaware.gov/services/current_bt/cra.pdf	Yes, every month		Outflow	Expense
	New 5	Hire truck driver with Class A CDL driver for East Cost and pay $20/hour for 30 hours a week (they might not need to drive all the time)	Yes, every month		Outflow	Expense
	New 7	Total expense/cost for the truck $15,000 per month ($180,000 per year which includes maintenance, gas, insurance, etc.) http://www.drivebigtrucks.com/trucking-news/the-real-operating-cost-of-a-commercial-truck/	Yes, every month		Outflow	Expense
	New 8	Telephone, utlities bill $1,200 per month, in DE, it's estimated to be around $600 per month for regular commercial https://www.eia.gov/electricity/sales_revenue_price/pdf/table5_b.pdf	Yes, every month	payable http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/balance-sheet-components-liabilities.asp	Outflow	Expense
August & September	2	Pay manager monthly salary of $6,000 per month	Yes, every month		Outflow	Expense
	3	Depreciation of building	Yes, every month	Depreciation Loss	Outflow	Expesnse
	4	Hire managers and employees; pay fringe benefits of $10 per month for gym membership for 45 employees. Total of $450 per month	Yes, every month		Outflow	Expense
	5	Pay employee health, life, and disability premiums, plus FICA, unemployment and withholding taxes. Total amount paid for benefits per month for all employees $53,314.29 (calculations is on sheet 3)	Yes, every month		Outflow	Expense
	8	Hire employees - Expense 1st month's salary/wages (can be found on sheet "Transaction 5") EXCLUDE MANAGER WAGE, set up machinery depreciation, set up standing costs - pay wages	Yes, every month	Depreciaiton Loss	Outflow	Expense
	12	Book depreciation and other manufacturing overhead costs for the month	Yes, every month
	16-18	Manufacture and month's supply of hip replacements - For August - create 1,000 hips, sold 800 hips; For September - create 1,200 hips, sold 1,000
	New 1	Advertising and promotions 2% of revenue (since we said 8% per year)	Yes, every quarter		Outflow	Expense
	New 3	Sales tax (.126% of goods solds per month of gross receipts - total receipt for goods sold) - this is for all businesses in DE. we're technically not a corporation in DE so we're not subject to the 8.7% federal taxable income. http://revenue.delaware.gov/services/current_bt/cra.pdf	Yes, every month		Outflow	Expense
	New 5	Hire truck driver with Class A CDL driver for East Cost and pay $20/hour for 30 hours a week (they might not need to drive all the time)	Yes, every month		Outflow	Expense
	New 7	Total expense/cost for the truck $15,000 per month ($180,000 per year which includes maintenance, gas, insurance, etc.) http://www.drivebigtrucks.com/trucking-news/the-real-operating-cost-of-a-commercial-truck/	Yes, every month		Outflow	Expense
	New 8	Telephone, utlities bill $1,200 per month, in DE, it's estimated to be around $600 per month for regular commercial https://www.eia.gov/electricity/sales_revenue_price/pdf/table5_b.pdf	Yes, every month	payable http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/balance-sheet-components-liabilities.asp	Outflow	Expense
October	2	Pay manager monthly salary of $6,000 per month	Yes, every month		Outflow	Expense
	3	Depreciation of building	Yes, every month	Depreciation Loss	Outflow	Expesnse
	4	Hire managers and employees; pay fringe benefits of $10 per month for gym membership for 45 employees. Total of $450 per month	Yes, every month		Outflow	Expense
	5	Pay employee health, life, and disability premiums, plus FICA, unemployment and withholding taxes. Total amount paid for benefits per month for all employees $53,314.29 (calculations is on sheet 3)	Yes, every month		Outflow	Expense
	8	Hire employees - Expense 1st month's salary/wages (can be found on sheet "Transaction 5") EXCLUDE MANAGER WAGE, set up machinery depreciation, set up standing costs - pay wages	Yes, every month	Depreciaiton Loss	Outflow	Expense
	9	Place order for raw materials at a cost of $1,000,000 which will include Machining, Casting, Grinding, Polishing, and metal injection molding materials (will be ordered every 3 months)	Yes, every 3 months (Jan, April, July, Oct)	Increase receivable, increase account payable	Outflow	Expense
	10	Receive 3 month supply of raw materials	Yes, every 3 months (Jan, April, July, Oct)	Increase asset, decrease receivable
	12	Book depreciation and other manufacturing overhead costs for the month	Yes, every month
	14	Pay for the 3 month supply of raw materials received in Transaction 10	Yes, every 3 months (Jan, April, July, Oct)	Decrease payable, increase liabilities	Outflow	Expense
	16-18	Manufacture and month's supply of hip replacements - create 2,000 hips, sold 1,200 hips
	New 3	Sales tax (.126% of goods solds per month of gross receipts - total receipt for goods sold) - this is for all businesses in DE. we're technically not a corporation in DE so we're not subject to the 8.7% federal taxable income. http://revenue.delaware.gov/services/current_bt/cra.pdf	Yes, every month		Outflow	Expense
	New 5	Hire truck driver with Class A CDL driver for East Cost and pay $20/hour for 30 hours a week (they might not need to drive all the time)	Yes, every month		Outflow	Expense
	New 7	Total expense/cost for the truck $15,000 per month ($180,000 per year which includes maintenance, gas, insurance, etc.) http://www.drivebigtrucks.com/trucking-news/the-real-operating-cost-of-a-commercial-truck/	Yes, every month		Outflow	Expense
	New 8	Telephone, utlities bill $1,200 per month, in DE, it's estimated to be around $600 per month for regular commercial https://www.eia.gov/electricity/sales_revenue_price/pdf/table5_b.pdf	Yes, every month	payable http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/balance-sheet-components-liabilities.asp	Outflow	Expense
November & December	2	Pay manager monthly salary of $6,000 per month	Yes, every month		Outflow	Expense
	3	Depreciation of building	Yes, every month	Depreciation Loss	Outflow	Expesnse
	4	Hire managers and employees; pay fringe benefits of $10 per month for gym membership for 45 employees. Total of $450 per month	Yes, every month		Outflow	Expense
	5	Pay employee health, life, and disability premiums, plus FICA, unemployment and withholding taxes. Total amount paid for benefits per month for all employees $53,314.29 (calculations is on sheet 3)	Yes, every month		Outflow	Expense
	8	Hire employees - Expense 1st month's salary/wages (can be found on sheet "Transaction 5") EXCLUDE MANAGER WAGE, set up machinery depreciation, set up standing costs - pay wages	Yes, every month	Depreciaiton Loss	Outflow	Expense
	12	Book depreciation and other manufacturing overhead costs for the month	Yes, every month
	16-18	Manufacture and month's supply of hip replacements - For November - create 1,500 hips, sold 1,200 hips; For September - create 1,100 hips, sold 1,000
	New 1	Advertising and promotions 2% of revenue (since we said 8% per year)	Yes, every quarter		Outflow	Expense
	New 2	Unanticiapted costs 10% of total projected costs per year			Outflow	Expense
	New 4	annual license fee of $75 http://revenue.delaware.gov/services/current_bt/cra.pdf
	New 3	Sales tax (.126% of goods solds per month of gross receipts - total receipt for goods sold) - this is for all businesses in DE. we're technically not a corporation in DE so we're not subject to the 8.7% federal taxable income. http://revenue.delaware.gov/services/current_bt/cra.pdf	Yes, every month		Outflow	Expense
	New 5	Hire truck driver with Class A CDL driver for East Cost and pay $20/hour for 30 hours a week (they might not need to drive all the time)	Yes, every month		Outflow	Expense
	New 7	Total expense/cost for the truck $15,000 per month ($180,000 per year which includes maintenance, gas, insurance, etc.) http://www.drivebigtrucks.com/trucking-news/the-real-operating-cost-of-a-commercial-truck/	Yes, every month		Outflow	Expense
	New 8	Telephone, utlities bill $1,200 per month, in DE, it's estimated to be around $600 per month for regular commercial https://www.eia.gov/electricity/sales_revenue_price/pdf/table5_b.pdf	Yes, every month	payable http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/balance-sheet-components-liabilities.asp	Outflow	Expense

Straight-line Depreciation

Under the straight-line method of depreciation, recognize depreciation expense evenly over the estimated useful life of an asset. The straight-line calculation steps are:

Determine the initial cost of the asset that has been recognized as a fixed asset.

Subtract the estimated salvage value of the asset from the amount at which it is recorded on the books.

Determine the estimated useful life of the asset. It is easiest to use a standard useful life for each class of assets.

Divide the estimated useful life (in years) into 1 to arrive at the straight-line depreciation rate.

Multiply the depreciation rate by the asset cost (less salvage value).

Straight Line Depreciation Example

Pensive Corporation purchases the Procrastinator Deluxe machine for $60,000. It has an estimated salvage value of $10,000 and a useful life of five years. Pensive calculates the annual straight-line depreciation for the machine as:

Purchase cost of $60,000 – estimated salvage value of $10,000 = Depreciable asset cost of $50,000

1 / 5-year useful life = 20% depreciation rate per year

20% depreciation rate x $50,000 depreciable asset cost = $10,000 annual depreciation

Transaction 5

wages and salaries (70%)	total compensation	benefits (30%) of total comp
o 15 of the workers will be paid at the rate of $18/hour for 40 hours per week (molding specialists) = $10,800 per week OR $43,200 per month	$61,714.29	$18,514.29
o 10 of the workers will be paid at the rate of $16/hour for 40 hours per week (machining specialists) = $6,400 per week OR $25,600 per month	$36,571.43	$10,971.43
o 5 of the workers will be paid at the rate of $13/hour for 40 hours per week (cleaning and maintenance) = $2,600 per week OR $10,400 per month	$14,857.14	$4,457.14
o 10 of the workers will be paid at the rate of $17/hour for 40 hours per week (shipping and receiving) = $6,800 per week OR $27, 200 per month	$38,857.14	$11,657.14
o 3 shift supervisors will be paid at the rate of $20/hour for 40 hours per week = $2,400 per week OR $9,600 per month	$13,714.29	$4,114.29
o 1 plant manager will be paid a salary of $6,000 per month	$8,571.43	$2,571.43
o 1 administrative/human resources person at the rate of $15/hour for 40 hours per week = $600 per week OR $2,400 per month	$3,428.57	$1,028.57
	$177,714.29	Total per Month
$124,400.00		$53,314.29

Cash Flow Notes


	OPERATING ACTIVITIES(ACTIVITIES RELATED TO NET INCOME)
	Cash receipts from the following:
	Sales of good or services
	Interest received from loans
	Dividends received from investments
	Cash payments for the following:
	Merchandise purchased from suppliers
	Materials used to manufacture products
	Employee payroll
	Interest paid to Lenders
	Income taxes
	Other operating expenses
	Investing Activities (activities related to noncurrent assests)
	Cash receipts from the following:
	Sale of long-term investments(e,g. bonds and stocks of other companies)
	Collecttion of principal for loans made to other entities
	Cash payments for the following
	Purchase of long-term investments (e.g. bonds and stocks of other companies)
	Purchase of property, plant and equipment
	Loans made to other entities
	Financing Activities (activities related to noncurrent liabilities and owners' equity)
	Cash receipts from the following:
	Issuance of notes (e.g. a loan with a bank)
	Issuance of bonds
	Issuance of common stock
	Cash payments for the following:
	Principal amount of loans*
	Principal amount of bonds*
	Repurchase of common stock (treasury stock)
	Cash dividends