Prepare a 5 year projected income statement, statement of cash flows, statement of financial position

- Purchased machinery costing 1,755,690 with 10 year useful life (straight line depreciation)

- Purchased production equipment costing 72,712.50 with 10 years useful life (straight line depreciation)

- Purchased office equipment costing 33,553 with 10 years useful life (straight line depreciation)

- Projected Units Produced

Year 1: 18,560

Year 2: 19,720

Year 3: 20,952

Year 4: 27,840

Year 5: 29,000

- Projected Direct Materials for 5 years

Year 1: 23,126,382.40

Year 2: 23,820,173.87

Year 3: 24,534,779.09

Year 4: 25,270,822.46

Year 5: 26,028,947.13

- Annual Direct Labor Cost: 1,059,370

- Annual Indirect Materials & Indirect Labor: 441,386

- Projected Annual Factory Utilities

Year 1: 18,398.35 (290 days)

Year 2: 18,398.35 (290 days)

Year 3: 18,561.80 (291 days)

Year 4: 18,398.35 (290 days)

Year 5: 18,398.35 (290 days)

Administrative Expenses

Salaries Expense - 824,070.00

Utilities Expense - 5,239.84

Communication Exp - 15,588.00

Food Expense - 30,000.00

Vehicle Rent Expense - 110,000.00

Insurance Expense - 140,400.00

Maintenance - 7,000.00

Fringe Benefits - 528,943.20

Office Supplies - 5,864.50

Personal Protective Equipment - 2,458

Office Cleaning Materials - 1,733.84

Safety Equipment - 2,162

Rent - 939,993.60

Unit Cost Price = Total Cost / Units Produced

Unit Selling Price = Unit Cost Price*1.8%

Yearly Sales = Unit Selling Price * Projected Number of Units Produced

- All Sales transactions are on account

- All purchases are on account

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Answer rating: 100% (QA)

SOLUTION Based on the information provided here are the projected income statements statements of cash flows and statements of financial position for the next five years Projected Income Statements Ye... View the full answer