Search Assets Current assets: Cash + New homework thread R QUESTIONS a preliminary to requesting tember October Novembe Accounts receivable Inventories: Finished goods Work in process Materials Prepaid expenses Total current assets > $ 40,600 27,100 44,500 x 193,500 ✔ 112,200 3,300 ✓ ow is information for Blue C the coming year, Cleves C manufacturing costs of So amint Systems Corporation Property, plant, and equipment: Plant and equipment Accumulated depreciation Total property, plant, and equipment Total assets Current liabilities: Liabilities Accounts payable Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 582,500 221,200 ✔ 250,000 768,300 ✔ 1 of 2 Check My Work 1 more Check My Work uses remaining. 361,300 ✔ $ X $ 165,300 ✔ 1,018,300 ✓ $ 1,183,600 ✓
As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Regina Soap Co.:
| Account Title | Debit Balance | Credit Balance |
|---|---|---|
| Cash | $103,500 | |
| Accounts Receivable | 193,500 | |
| Finished Goods | 40,600 | |
| Work in Process | 27,100 | |
| Materials | 44,500 | |
| Prepaid Expenses | 3,300 | |
| Plant and Equipment | 458,500 | |
| Accumulated Depreciation—Plant and Equipment | $197,200 | |
| Accounts Payable | 165,300 | |
| Common Stock, $10 par | 250,000 | |
| Retained Earnings | 258,500 | |
| Total | $871,000 | $871,000 |
Factory output and sales for 20Y9 are expected to total 24,000 units of product, which are to be sold at $120 per unit. The quantities and costs of the inventories at December 31, 20Y9, are expected to remain unchanged from the balances at the beginning of the year.
Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows:
| Line Item Description | Fixed (Total for Year) |
Variable (Per Unit Sold) |
|---|---|---|
| Cost of goods manufactured and sold: | ||
| Direct materials | _ | $30 |
| Direct labor | _ | 9.5 |
| Factory overhead: | ||
| Depreciation of plant and equipment | $24,000 | _ |
| Other factory overhead | 7,400 | 5.5 |
| Selling expenses: | ||
| Sales salaries and commissions | 86,200 | 15 |
| Advertising | 72,000 | _ |
| Miscellaneous selling expense | 6,200 | 2.5 |
| Administrative expenses: | ||
| Office and officers salaries | 56,600 | 7.5 |
| Supplies | 2,900 | 1 |
| Miscellaneous administrative expense | 1,500 | 2 |
Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of $261,400 on 20Y9 taxable income will be paid during 20Y9. Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March, June, September, and December on 25,000 shares of common stock outstanding. It is anticipated that equipment will be purchased for $124,000 cash in May.
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