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The following information is available regarding the actual selling
costs incurred for 2005:
No change
2006 ADMINISTRATIVE BUDGET INFORMATION
The administrative department consists of the president and an
office staff of eight who handle the secretarial, purchasing, and
accounting duties. (Total of nine people.) The following information
is available regarding the 2005 actual costs:
It is felt that the level of the office and administrative staff will be
adequate for the coming year. It is expected that the
following changes will occur in 2006:
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