2006 INCOME TAX INFORMATION
The current federal and state income tax rates total 40%. All taxes for
the year will be paid by the end of the year
which means that there will be no accrued taxes on December 31,
2006.
2006 ACCOUNTS RECEIVABLE INFORMATION
It is expected sales will occur evenly throughout the year and that
there will be no cash sales. 75% of monthly sales
will be collected in the month following the sale, and the remaining
25% will be collected by the end of the second
month. No bad debts are anticipated.
2006 ACCOUNTS PAYABLE INFORMATION
This account represents the purchases for raw materials only. It is
expected that purchases will be made evenly throughout
the year, and that all purchases will be paid for during the month
following the purchase.
2006 WAGE AND SALARY INFORMATION
The accrued wage account will include all direct labor, indirect labor,
sales commissions and salaries, and administrative salaries. All wages
are earned evenly throughout the year, and employees are paid twice
each month. On December 31, 2006, the accrued wages will include
wages representing one full payroll period.
2006 ACCRUED OTHER INFORMATION