* TE 30% O 4:05 PM Salem Company - Saved READ ONLY - This is an older file forma. PROJECT DUE DATE: Wednesday October 28, 2020 Below is Salem Company's income statement for 2019 that was prepared by an inexperienced accountant. Salem Company Income Statement As of December 31, 2019 Revenues: Sales revenue $298,000 4,000 Wages payable.. Gain on sale of investment.. Deferred revenue. Interest payable.. Accumulated depreciation.. Total revenues 5,250 2,500 1,000 8,000 $318,750 Less operating expenses: Selling expenses. Research and development expense. Prepaid advertising Indirect manufacturing labor cost... Utilities expense.... Direct manufacturing labor cost. Factory equipment, cost.. Insurance expense.. Restructuring costs.. Direct materials purchased. Interest expense. $32,250 4,750 3,000 16,200 10,200 41,000 40,000 3,500 4,000 93,000 1,750 18,000 3,000 Rent expense... Other factory indirect costs. Dividend paid.. Administrative expenses. 1,500 40,400 17,000 Short-term investment. Total operating expenses Net operating loss a. Seventy percent (70%) of utilities expense and 80% of insurance expense are for factory operations. Add the remaining utilities and insurance expenses equally to selling expenses and administrative expenses. 329,550 |($10,800) b. Sixty percent (60%) of the rent expense is associated with factory operations. Add the remaining rent expense equally to selling expenses and administrative expenses. c. Factory equipment was purchased January 1, 2018. It was estimated that the useful life of the equipment is 10 years and the residual value, $4,000. The $8,000 accumulated depreciation above is for 2018. No depreciation was charged for 2019. The company uses the double-declining balance method of depreciation. d. Inventory balances are: Direct materials. Work-in-process Finished goods January 1, 2019 $5,000 $8,000 $25,000 December 31., 2019 $6,600 $10,000 $28,000 The president is disappointed with the results of operations and has asked you to review the income statement and make a recommendation as to whether the company should look for a buyer for its assets. Required: 1 1. As one step in gathering data for the president, prepare a corrected schedule of cost of goods manufactured for the year ended December 31, 2019 2. As a second step, prepare a corrected multiple-step income statement for the year ended December 31, 2019. INSTRUCTIONS: A. This assignment must be completed in Excel. Handwritten work or late assignments will not be accepted. B. Grading of this project will be based on: 1. Accuracy of your schedule of cost of goods manufactured and income statement 2. Use of formulas, neatness and formatting of your Excel schedule of cost of goods manufactured and income statement. NOTE: a) Do not use .00 after each number, or color your work. b) Do not use excessive $ signs on your Wednesday October 28, 2020. Email me your Excel schedule of cost of goods manufactured and income statement as an attachment on or before the due date. >