1. Projected sales are $ 1,800,000( 12,690 units) 2. Projected direct material purchases are $ 500,000 3. Projected direct material usage is $ 495,000 4. Projected direct labor expense is $ 400,000 5. Projected overhead is $ 380,000 6. Projected selling expenses are $ 120,000 7. Projected administrative expenses are $ 300,000 8. Projected cash collections are $ 1,785,000 9. Projected payments for materials( accounts payable) are $ 520,000
10. Projected payments for other operating expenses( other current liabilities) are $ 1,130,000
11. Projected depreciation expense is $ 55,000 and is already included in mfg overhead
Additional information that is available: 1. The expected tax rate is 35 % 2. The company is planning a stock issue of $ 25,000 3. Income taxes are paid 3 months after the year-end
4. The company anticipates purchasing a new patent for $ 10,000 during the year.
5. WIP inventory is expected to decrease by $ 2,000 6. Finished goods inventory is expected to increase by $ 8,000
7. Due to insurance rate increases, it is expected that prepaid expenses will increase by $ 3,000
Investment information: