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The Duncan Company has just completed a number of budgets for
the coming year. The cost of goods manufactured schedule, the
proforma income statement and the balance sheet still have to be
completed. The following information is available:
Information from recent budgets for the coming year:
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 a