A-Design Inc., a federally incorporated company in Canada, specializing in the design and manufacturing of armrests...
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A-Design Inc., a federally incorporated company in Canada, specializing in the design and manufacturing of armrests for the wheelchair industry plans to produce and sell 15,000 armrests at $50 per unit in its third year of operation and has also planned $20,000 for marketing campaigns, $100,000 for electricity, $240,000 for salaries, $300,000 for production materials, $20,000 for overhead, $24,000 for rent and $10,000 for depreciation. A-Design has a debt of $100,000 at an annual simple interest rate of 5% and a 25% income tax rate. 1. Produce a table of A-Design's different costs and classify them. Produce A-Design's income statement at the end of their third year and determine the operating income, earnings before taxes and net income. 3. As at December 31st, 2018, A-Design Inc. presented the following financial data: $320,000 in cash, $100,000 for inventory, $580,000 in equipment, $500,000 in bank loans, $300,000 in accounts payable and $100,000 in other liabilities. Produce a balance sheet for A- Design Inc. for the year 2018. For the month of January 2017, A-Design Inc. reported the following financial data in its journal: $100,000 in sales, $10,000 in loans, $2,000 for rent, $75,000 for production materials, $2,000 for marketing, $20,000 in salaries and $10,000 for electricity. Produce a cash flow statement for A-Design Inc. for January 2017. A-Design Inc., a federally incorporated company in Canada, specializing in the design and manufacturing of armrests for the wheelchair industry plans to produce and sell 15,000 armrests at $50 per unit in its third year of operation and has also planned $20,000 for marketing campaigns, $100,000 for electricity, $240,000 for salaries, $300,000 for production materials, $20,000 for overhead, $24,000 for rent and $10,000 for depreciation. A-Design has a debt of $100,000 at an annual simple interest rate of 5% and a 25% income tax rate. 1. Produce a table of A-Design's different costs and classify them. Produce A-Design's income statement at the end of their third year and determine the operating income, earnings before taxes and net income. 3. As at December 31st, 2018, A-Design Inc. presented the following financial data: $320,000 in cash, $100,000 for inventory, $580,000 in equipment, $500,000 in bank loans, $300,000 in accounts payable and $100,000 in other liabilities. Produce a balance sheet for A- Design Inc. for the year 2018. For the month of January 2017, A-Design Inc. reported the following financial data in its journal: $100,000 in sales, $10,000 in loans, $2,000 for rent, $75,000 for production materials, $2,000 for marketing, $20,000 in salaries and $10,000 for electricity. Produce a cash flow statement for A-Design Inc. for January 2017.
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Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
Posted Date:
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