Source: Case $9\mathrm{.}42$

Langfield$-$Smith, K$.,$ Smith, D$.,$ Andon, P$.,$ Hilton, R$.$ and Thorne, H$.2018,$

Management Accounting: Information for Creating and Managing Value,

$8$th edition, McGraw$-$Hill Education $($Australia$)$ Pty Ltd$.$

Universal Electric Company is a small, rapidly growing wholesaler of consumer electrical products. The firm$$s main

product lines are small kitchen appliances and power tools. Marcia Wilcox, Universal$$s general manager of marketing,

has recently completed a sales forecast. She believes that the company$$s sales during the first quarter of next year will

increase by $10$ per cent each month over the previous month$$s sales. Wilcox then expects sales to remain constant for

several months. Universal$$s projected balance sheet as at $31$ December this year is as follows: