Login
E-Mail Address:

Password:


 
CHARITY AND SPONSOR ADS
LiveZilla Live Help

Shopping Cart
0 items
 

The results of operations for the Preston Manufacturing Company for the fourth quarter of 2011 were as follows

The results of operations for the Preston Manufacturing Company for the fourth quarter of 2011 were as follows
Click to enlarge
Price: $14.99
Availability: In Stock
Model: A
Average Rating: 5 out of 5 Stars!

The results of operations for the Preston Manufacturing Company for the fourth quarter of 2011 were as follows: Sales Less variable cost of sales Contribution margin Less fixed production costs Less fixed selling and administrative expenses Income before taxes Less taxes on income Net income $550,000 330,000 220,000 $110,000 55,000 165,000 55,000 22,000 $ 33,000 Note: Preston Manufacturing usesthe variable costing method. Thus,only variable production costs are included in inventory and cost of goods sold. Fixed production costs are charged to expense in the period incurred. The company\\\'s balance sheet as of the end of the fourth quarter of 2011 was as follows: Assets: Cash Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Total assets Liabilities and owners\\\' equity: Accounts payable Common stock Retained earnings Total liabilities and owners\\\' equity $ 165,000 220,000 385,000 770,000 440,000 (110,000) $1,100,000 $ 66,000 550,000 484,000 ffiOO,OoO \\\", , Additional information: 1. Salesand variable costs of sales are expected to increase by 1° percent in the next quarter. 2. All sales are on credit with 60 percent collected in the quarter of sale and 40 percent collected in the following quarter. 3. Variable cost of sales consists of 40 percent materials, 40 percent direct labor, and 20 percent variable overhead. Materials are purchased on credit. Fifty percent are paid for in the quarter of purchase, and the remaining amount is paid for in the quarter after purchase. The inventory balance is not expected to change. Also, direct labor and variable overhead costs are paid in the quarter the expenses are incurred. 4. Fixed production costs (other than $9,000 of depreciation expense) are expected to increase by 2 percent. Fixed production costs requiring payment are paid in the quarter they are incurred, 5. Fixed selling and administrative costs (other than $8,000 of depreciation expense) are expected to increase by 2 percent. Fixed selling and administrative costs requiring payment are paid in the quarter they are incurred. 6. The tax rate is expected to be 40 percent. All taxes are paid in the quarter they are incurred. 7. No purchases of property, plant, or equipment are expected in the first quarter of 2012. Required a. Prepare a budgeted income statement for the first quarter of 2012. b. Prepare a cash budget for the first quarter of 2012. c. Prepare a budgeted balance sheet as of the end of the first quarter of 2012. NOTE: This question is NOT our property; we are only suggesting solution of this question.

Write Review
Your Name:


Your Review: Note: HTML is not translated!

Rating: Bad            Good

Enter the code in the box below:

There are no additional images for this product.