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 :