DEF Company.xlsx

6 Pages
59 Views
Unlock Document

Department
Business Administration
Course
Business Administration 1220E
Professor
Scott Lin
Semester
Fall

Description
DEF Company Ltd. Projected Statement of Earnings Revenues Sales (given) 750,000 COGS: Beginning Inventory (given) 150,000 Purchases (plug) 597,945 COGAFS (COGS + EI) 747,945 Ending Inventory (90 Days COGS) 147,945 COGS (Sales - Gross Profit) 600,000 Gross Profit (given) 150,000 Operating Expenses Salary (given) 42,000 Amortization (given) 6,000 Other Expenses (8% sales) 60,000 Total Operating Expenses 108,000 EBIT 42,000 Income tax (25%) 10,500 Net Earnings 31,500 DEF Company Ltd. Projected SORE Retained Earnings, Year Open 75,000 Net Earnings 31,500 Dividends (25% net earnings) 7,875 Retained Earnings, Year End 98,625 DEF Company Ltd. Projected BS Current Assets A/R (10 Days' Sales) 20,548 Inventory 147,945 Total Current Assets 168,493 Fixed Assets Buildings and Fixtures (given) 90,000 Less: Accumulated Depreication (given) 27,000 63,000 Land (given) 30,000 Total Fixed Assets 93,000 Total Assets 261,493 Current Liabilities Income Tax Payable (30% of Income Tax) 3,150 Bank Loan (plug) -5,810 Note: A negative bank loan can be A/P (40 days purchases) 65,528 interpreted as positive cash of 5810 Total Liabilities 62,868 Shareholders' Equity Common Stock (given) 100,000 Retained Earnings (SORE) 98,625 Total Shareholders' Equity 198,625 Total Liabilities and Shareholders' Equity 261,493 DEF Company Ltd. Projected Statement of Earnings Revenues Sales (given) COGS: Beginning Inventory (given) 150,000 Purchases (plug) 847,260 COGAFS (COGS + EI) 997,260 Ending Inventory (90 Days COGS) 197,260 COGS (Sales - Gross Profit) Gross Profit (given)
More Less

Related notes for Business Administration 1220E

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit