Listed below are the amounts of the revenue and expense items included
in the Redwing income statement for the current fiscal year. Using
Excel, prepare an income statement for the Redwing Sales Corporation.
From the income statement, calculate the gross margin. From the income
statement, develop an annual budget by month. Identify fixed and
variable expenses, list assumptions at the bottom of the income
statement.
Accounting fees 6,000
Administrative Payroll 94,000
Advertising 7,500
Cost of Goods Sold 550,000
Income Tax 800
Interest Income 4,000
Office Supplies 6,000
Payroll taxes 15,000
Rent 30,000
Sales 800,000
Sales Commission 40,000
Selling Supplies 2250
Telephone 5,000
Truck Lease 5,400
Utilities 3,000
Listed below are the amounts of the various asset, liability and
stockholders' equity items included in the Redwing Sales Corporation's
balance sheet as of December 31, 1998. Using Excel, prepare a balance
sheet for the Redwing Sales Corporation for the year ended December
31,1998.
Accounts Payable $94,300
Accounts Receivable 92,600
Accumulated Depreciation, building 20,000
Accumulated Depreciation, equipment 16,000
Accumulated Depreciation, vehicles 8,000
Additional paid-in capital 25,000
Building 70,000
Capital stock, par value $100, authorized 1000 shares,
issued 900 shares 90,000
Cash 36,400
Equipment 30,000
Franchise 6,500
Goodwill 10,000
Investment in JKL Corporation 9,000
Land 9,250
Marketable Securities 8,000
Merchandise Inventory 119,000
Motor vehicles 20,000
Note payable 7,000
Note payable (due June 30, 2001) 30,000
Notes receivable 5,000
Prepaid expenses 3,000
Retained earnings 119,750
Revenue received in advance 2,000
Taxes payable 2,700
Wages payable 4,000
Using the information below, complete a Six Week Cash Flow Forecast
for the Redwing Sales Corporation.
Beginning checking account balance $7,000
Accounts Receivable:
30 day 20,000
60 day 7,000
90 day 18,000
over 90 24,000
Payroll is biweekly 4,000
Payroll taxes (due on the 15th of each month) 750
ABC Vendor total amount due)
(amount is current, terms 2/10 net 30) 5,000
CBS Vendor total due (currently on COD) 15,000
Monthly truck lease 450
Payment on building 2,500
Accountant 500
Telephone, (average) due on the 20th of the month 400
Utilities, (average) due on the 4th of each month 250
All sales are posted to Accounts Receivable, averages sales of $6000 per week.
Cost of goods sold is evenly split between the two vendors. |
