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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