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
This account includes all other cash expenses not included in Account Payable and Accrued Wages . It is the company ' s policy to pay all other expenses during the month following the purchase . These expenses will be incurred evenly throughout the year . The 20 % fringe benefits will be paid on all wages , salaries , and commissions .
2006 PROPERTY , PLANT AND EQUIPMENT INFORMATION