a. The company has gross sales of $110 thousand per month and the pattern of sales is even, i.e. there is no cyclical pattern to sales. b. COGS for the business is 50% and is 75% materials. d. For simplicity, assume we have no work in progress. e. The company pays its suppliers one month after goods are received. f. Customers are large firms, which pay us 2 months after we deliver our product. g. The owners started the business with an initial capital injection of $1.5 million and a $750 thousand long-term bank loan, h. The bank loan principle is payable in 10 equal annual payments, and the 5th annual payment has recently been made. i. In the first 5 years of the business, the company had a cumulative net income of $500 thousand, and paid dividends of $50 thousand for the first j. Monthly payroll is $40 thousand, paid monthly. We're currently half way between pay cycles. k. All utilities and those types of bills have just recently been paid. n. There are no short or long term investments, no prepaid expenses, no goodwill, and no repayable grants, and taxes are up to date. Notes: 3. Express your quantities in your answer in thousands ($000). Balance Sheet - \$(000) Current Liabilities: Accounts Payable Accrued Expenses Taxes Payable Current Portion Long-Term Debt Sum of the Current Liability Long Term Liabilities: Repayable Grants Shareholders Equity: Total Liabilities And Equity a. The company has gross sales of $110 thousand per month and the pattern of sales is even, i.e. there is no cyclical pattern to sales. b. COGS for the business is 50% and is 75% materials. d. For simplicity, assume we have no work in progress. e. The company pays its suppliers one month after goods are received. f. Customers are large firms, which pay us 2 months after we deliver our product. g. The owners started the business with an initial capital injection of $1.5 million and a $750 thousand long-term bank loan, h. The bank loan principle is payable in 10 equal annual payments, and the 5th annual payment has recently been made. i. In the first 5 years of the business, the company had a cumulative net income of $500 thousand, and paid dividends of $50 thousand for the first j. Monthly payroll is $40 thousand, paid monthly. We're currently half way between pay cycles. k. All utilities and those types of bills have just recently been paid. n. There are no short or long term investments, no prepaid expenses, no goodwill, and no repayable grants, and taxes are up to date. Notes: 3. Express your quantities in your answer in thousands ($000). Balance Sheet - \$(000) Current Liabilities: Accounts Payable Accrued Expenses Taxes Payable Current Portion Long-Term Debt Sum of the Current Liability Long Term Liabilities: Repayable Grants Shareholders Equity: Total Liabilities And Equity
