50000
70000

120000
180000

350000
280000

400000
300000

-170000
-100000

750000
730000

250000
210000

40000
10000

240000
240000

220000
270000

750000
730000

1200000

800000

250000

70000

30000

100000

14.5

80000
5000

40000
5000

198000

191250

Cash
Accounts receivable (net)
Merchandise inventory
Property plant, & equipment
Less: Accumulated depreciation
Total assets
Income taxes payable
Common stock
Retained earnings
Total liabilities & stock, equity
Dec. 31,19X2
Dec. 31,19X1
The firm’s accrual-basis income statement revealed the following data:
Sales
Cost of goods sold
selling and administrative expenses
Depreciation expense
Income taxes
(There was no interest expense.)
Dividends declared and paid during 19X2
Machine Hours
Current Product
Fixed Factory Overhead
Expansion Product (estimate)
Direct Materials
$1.30 per unit
Variable Selling Expense
Based on Chapter 5’s exercise 5
$4.00 per unit
$2.80 per unit
$0.20 per unit
Fixed Selling expenses
$5.60 per unit
Direct labor dollars needed per product
Total Fixed Costs:
Variable Factory Overhead
$1.00 per Machine Hour
Selling Price
?
ABC’s Product information
ABC Company’s current financial information (before/without expansion)
Units produced and expected to be sold
Accounts payable
ABC purchased $100,000 of equipment for cash on August 14.