BM 220 MANAGEMENT ACCOUNTING AND CONTROL ALLON, ROWENA T.

1997-65710

1.

Browning Manufacturing Company Projected 2010 Statement of Cost of Goods Sold

Finished goods inventory, 1/1/10 Work in process inventory, 1/1/10 Materials used Plus: Factory expenses Direct manufacturing labor Factory overhead: Indirect manufacturing labor Power, heat and light Depreciation of plant Social Security taxes Taxes and insurance, factory Supplies Less: Work in process inventory, 12/31/10 Cost of goods manufactured (i.e. Completed) Less: Finished goods inventory, 12/31/10 Cost of goods sold

257,040.00 172,200.00 811,000.00 492,000.00 198,000.00 135,600.00 140,400.00 49,200.00 52,800.00 61,200.00

637,200.00 2,112,400.00 210,448.00 1,901,952.00 2,158,992.00 352,368.00 1,806,624.00

BM 220 MANAGEMENT ACCOUNTING AND CONTROL ALLON, ROWENA T. 1997-65710

Browning Manufacturing Company Projected 2010 Income Statement

Sales Less: Sales returns and allowances Sales discounts allowed Cost of goods sold (per schedule) 19,200.00 49,200.00

2,562,000.00

Net Sales Less: Gross margin

68,400.00 2,493,600.00 1,806,624.00 686,976.00 522,000.00 164,976.00 38,400.00 126,576.00 58,000.00 68,576.00

Selling and Less: administrative expense Operating income Less: Interest expense Income before federal and state income tax Estimated income tax expense Less: Net income

BM 220 MANAGEMENT ACCOUNTING AND CONTROL ALLON, ROWENA T. 1997-65710

Browning Manufacturing Company Projected 2010 Balance Sheet

Assets Current Assets: Cash and marketable securities Accounts receivable (net of allowance for DA) Inventories: Materials Work in process Finished goods Supplies Prepaid taxes and insurance Total current assets Other assets: Manufacturing plant at cost Less: Accumulated depreciation Total Assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Notes payable Income taxes payable Deferred taxes payable Total current liabilities Shareholders' equity: Capital stock Retained earnings Total Liabilites and Shareholders' Equity

495,840.00 201,360.00 124,520.00 210,448.00 352,368.00 22,080.00

709,416.00 91,920.00 1,498,536.00

2,822,400.00 1,047,600.00

1,774,800.00 3,273,336.00

288,360.00 552,840.00 5,800.00 52,200.00 899,200.00 1,512,000.00 862,136.00

2,374,136.00 3,273,336.00

BM 220 MANAGEMENT ACCOUNTING AND CONTROL ALLON, ROWENA T. 1997-65710

2. Accounts Sales Sales returns and allowances Sales discounts allowed Cost of goods sold (per schedule) Selling and administrative expense Interest expense Estimated income tax expense Cash and marketable securities Accounts receivable (net) Materials Work in process Finished goods Supplies Prepaid taxes and insurance Manufacturing plant at cost Accounts payable Notes payable Income taxes payable Capital stock Retained earnings 2009 2,295,600.00 17,640.00 43,920.00 1,568,280.00 437,160.00 34,080.00 89,520.00 118,440.00 311,760.00 110,520.00 172,200.00 257,040.00 17,280.00 66,720.00 2,678,400.00 185,760.00 288,840.00 9,000.00 1,512,000.00 829,560.00 2010 2,562,000.00 19,200.00 49,200.00 1,806,624.00 522,000.00 38,400.00 58,000.00 495,840.00 201,360.00 124,520.00 210,448.00 352,368.00 22,080.00 91,920.00 2,822,400.00 288,360.00 552,840.00 5,800.00 1,512,000.00 862,136.00 % 12% 9% 12% 15% 19% 13% -35% 319% -35% 13% 22% 37% 28% 38% 5% 55% 91% -36% 0% 4% Inc/Dec Increase Increase Increase Increase Increase Increase Decrease Increase Decrease Increase Increase Increase Increase Increase Increase Increase Increase Decrease Increase

From the table above, it is noted that there is a remarkable increase in the Cash and marketable securities account by 319%. Further, there is also a decrease in the Accounts receivable account, which means that there is a increase in cash because of the collections forecasted. On the other hand, the accounts and notes payable accounts also increased by 55% and 91%, respectively.

3.