Building Cedar Roofing And Siding Shingles

1400 Words6 Pages
The ABC Company is a manufacturing company that specializes in making cedar roofing and siding shingles. The company has plans on expanding its business to include building cedar dollhouses. A controller is an individual who has responsibility for all accounting-related activities within a firm. In most organizations, the controller is the top managerial and financial accountant. The controller supervises the accounting department and assists management in interpreting and utilizing managerial accounting information. As being the new controller of the company, I have been assigned to oversee a new plan that was presented by the CEO. The plan is to reach the $3 million mark over the next three years. This plan will bring risk and…show more content…
Depending on the economy, the selling of the products depends on the customers. ABC Company 's current financial information (before/without expansion) Dec. 31,20X2 Dec. 31,20X1 Cash $ 50,000 $ 70,000 Accounts receivable (net) $ 120,000 $ 180,000 Merchandise inventory $ 350,000 $ 280,000 Property plant, & equipment $ 400,000 $ 300,000 Less: Accumulated depreciation $ (170,000) $ (100,000) Total assets $ 750,000 $ 730,000 Accounts payable $ 250,000 $ 210,000 Income taxes payable $ 40,000 $ 10,000 Common stock $ 240,000 $ 240,000 Retained earnings $ 220,000 $ 270,000 Total liabilities & stock, equity $ 750,000 $ 730,000 The firm 's accrual-basis income statement revealed the following data: Sales $ 1,200,000 Cost of goods sold $ 800,000 selling and administrative expenses $ 250,000 Depreciation expense $ 70,000 Income taxes $ 30,000 Dividends declared and paid during 20X2 $ 100,000 ABC purchased $100,000 of equipment for cash on August 14, 20X2 Cash Flow (direct method) Cash received from customers 120000 Less cash paid for: Inventory 63,000 Salaries 46,000 Rent 32,000 Interest Other operating expense 40,000 Income taxes 30,000
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