Alert Inc. is a Canadian company that is specialized in the design and manufacturing of intelligent alert systems for seniors. The company sold 20,000 switches at $50 per unit in 2021, spent $20,000 for marketing campaigns, $150,000 for electricity, $250,000 for salaries, $300,000 for alert components, $10,000 for staff training, and $24,000 for rent. The company had a depreciation allowance of $10,000, a bank loan of $100,000 at an annual simple interest rate of 5% and an income tax rate of 25%. At the end of 2021, Alert Inc. possessed $320,000 as cash, $100,000 as inventory, $600,000 as equipment, $100,000 as accounts receivable and $300,000 as accounts payable.List all special costs, semi-variable and direct variable costs of the company in 2021.Produce the income statement of the company in 2021.Complete the balance sheet of the company in 2021 partially provided below. (Figure 1)Complete the cash flow statement of the company in 2021 partially provided below. (Figure 2)How many alert systems should sell the company to break even the total operating expenses?To improve the company's sales and profits, Alert Inc. offers two purchasing options to customers. Option A is a $200 upfront deposit and a $500 yearly fee for the next 3 years. Option B is a $1,000 upfront deposit and a $300 yearly fee for the next 2 years. Assuming a 10% annual compound interest rate, determine the best option for the customers. Please elaborate on your answers and provide a visual representation of both options. AssetsInventoryEquipment$100,000$600,000Total Assets $1,110,000LiabilitiesEquipment loanOther loan payableOther borrowing$400,000$150,000$10,000 Cash InAdditional cash receivedTotal Cash In$520,000$840,000Cash OutMarketingElectricitySalaryAlert componentsStaff training$20,000$150,000$250,000$300,000$10,000

1. All special costs, semi-variable and direct variable costs Type of Cost Nature Marketing…

Answered: List all special costs, semi-variable…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Alert Inc. is a Canadian company that is specialized in the design and manufacturing of intelligent alert systems for seniors. The company sold 20,000 switches at $50 per unit in 2021, spent $20,000 for marketing campaigns, $150,000 for electricity, $250,000 for salaries, $300,000 for alert components, $10,000 for staff training, and $24,000 for rent. The company had a depreciation allowance of $10,000, a bank loan of $100,000 at an annual simple interest rate of 5% and an income tax rate of 25%. At the end of 2021, Alert Inc. possessed $320,000 as cash, $100,000 as inventory, $600,000 as equipment, $100,000 as accounts receivable and $300,000 as accounts payable.

List all special costs, semi-variable and direct variable costs of the company in 2021.
Produce the income statement of the company in 2021.
Complete the balance sheet of the company in 2021 partially provided below. (Figure 1)
Complete the cash flow statement of the company in 2021 partially provided below. (Figure 2)
How many alert systems should sell the company to break even the total operating expenses?
To improve the company's sales and profits, Alert Inc. offers two purchasing options to customers. Option A is a $200 upfront deposit and a $500 yearly fee for the next 3 years. Option B is a $1,000 upfront deposit and a $300 yearly fee for the next 2 years. Assuming a 10% annual compound interest rate, determine the best option for the customers. Please elaborate on your answers and provide a visual representation of both options.

Assets
Inventory
Equipment
$100,000
$600,000
Total Assets $1,110,000
Liabilities
Equipment loan
Other loan payable
Other borrowing
$400,000
$150,000
$10,000

Cash In
Additional cash received
Total Cash In
$520,000
$840,000
Cash Out
Marketing
Electricity
Salary
Alert components
Staff training
$20,000
$150,000
$250,000
$300,000
$10,000

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