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Posted on Jul 18, 2024

6. Montana Furniture Design is presented using Generally Accepted Accounting Principles. This requires that the financials be presented using the accrual method of accounting. If

6. Montana Furniture Design is presented using Generally Accepted Accounting Principles. This requires that the financials be presented using the accrual method of accounting. If we changed the 2020 method of accounting from the accrual method to the cash method, what would the 2020 net income be? Montana Furniture Design Profit and Loss January 2018 - December 2020 JAN - DEC 2018 $2,276,200.04 JAN - DEC 2019 $2,018,919.33 JAN - DEC 2020 $2,544,841.58 Income Cost of Goods Sold Cost of Goods Sold Labor & wages Materials Other costs Shipping Wholesale items Total Cost of Goods Sold GROSS PROFIT 535,388.59 358,432.76 17,572.46 120,887.26 369,990.57 $1,402,271.64 $873,928.40 487,623.68 380,220.98 24,162.06 116,725.88 305,975.62 $1,314,708.22 $704,211.11 537,451.37 512,163.80 17,390.32 137,198.74 364,227.35 $1,568,431.58 $976,410.00 Expenses 10.00 2710175 0 RON 27,181.75 13,944.88 14,803.36 1,301.94 8,186.70 5,491.70 2,353.90 Expenses Charitable contributions Fees & subscriptions Marketing Meals and Entertainment Office expenses & utilities Payroll expenses - administration Property taxes Reference materials Repair & Maintenance Salaries & wages Supplies & small tools Telephone & internet Travel Total Expenses NET OPERATING INCOME Other Income Other Expenses NET OTHER INCOME NET INCOME 9,733.46 225,935.42 5,568.83 5,077.83 8,657.06 $328,236.83 $545,691,57 $56.08 $0.00 $56.08 $545 747 65 40,520.25 12,656.21 28,961.30 700.52 22,029.10 I 2,409.13 17.25 19,141.09 228,873.71 4,634.71 3,782.59 11,214.06 $374,938.92 $329,272.19 $52.15 $0.00 $52.15 $329 324 34 42,285.00 16,440.78 30,472.93 1,926.62 19,368.75 1,027.64 2,479.04 49.95 17,400.04 250,031.63 5,719.65 5.902.69 12,855.67 $405,960.39 $570,449.61 $171.00 $58.48 $112.52 $570.562.10 Balance Sheet 2018 through 2020 JAN - DEC 2018 JAN - DEC 2019 JAN - DEC 2020 ASSETS Current Assets Bank Accounts Checking Savings Petty Cash Total Bank Accounts Accounts Receivable Accounts Receivable Total Accounts Receivable Other Current Assets Total Current Assets 29,210.44 5.00 6,066.58 $35,282.02 75,266.59 5.27 0.00 $75,271.86 60118.13 72,271.10 0.00 $132,389.23 39,695.00 $39,695.00 $17,681.69 $92,658.71 37,890.29 $37,890.29 $0.00 $113,162.15 212,066,58 $212,066.58 $24,476.40 $368,932.21 UA 29,270844 5.00 6,066.58 $35,282.02 75,266.59 5.27 0.00 $75,271.86 60118.13 72,271.10 0.00 $132,389.23 Checking Savings Petty Cash Total Bank Accounts Accounts Receivable Accounts Receivable Total Accounts Receivable Other Current Assets Total Current Assets Fixed Assets Accumulated depreciation Equipment Improvements Roof Building addition Total Fixed Assets Inventory TOTAL ASSETS 39,695.00 $39,695.00 $17.681.69 $92,658.71 37.890.29 $37.890.29 I $0.00 $113,162.15 212,066.58 $212,066.58 $24,476.40 $368,932.21 -227,052.00 256,308.00 30.870.00 27.450.13 $87,576.13 $612,601.00 $792,835,84 -239,224.00 262,447.00 5,300.40 30,870.00 27.450.13 $86,843.53 $588,791.00 $788,796.68 -243,369.00 262,447.00 5,300.40 30.870.00 27,450.13 $82,698.53 $294,153.00 $745,783.74 LIABILITIES AND EQUITY Liabilities Inventory TOTAL ASSETS $612,601.00 $792,835.84 $588,791.00 $788,796.68 $294,153.00 $745,783.74 1 LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts Payable Accounts Payable Total Accounts Payable Credit Cards Line of Credit Total Current Liabilities Long-Term Liabilities Total Liabilities Equity TOTAL LIABILITIES AND EQUITY 0.00 $0.00 $-6,021.46 $60,000.00 $53,978.54 $0.00 $53,978,54 $738,857.30 $792,835.84 35,772.72 $35,772.72 $7,819.82 $0.00 $43,592.54 $0.00 $43,592.54 $745,204.14 $788,796.68 0.00 $0.00 $27,723.07 $0.00 $27,723.07 $112,170.40 $139,893.47 $605,890.27 $745,783.74