Assets

Cash$120,000

Accounts receivable130,000

Inventory160,000

Total current assets$ 410,000

Fixed assets900,000

Accumulated depreciation(300,000)

Total Fixed Assets Net600,000

Total Assets$1,010,000

Liabilities and Equities

Accounts payable$ 230,000

Long-term debt370,000

Total liabilities$600,000

Common stock at par$150,000

Additional paid-in150,000

Retained earnings110,000

Total Equity410,000

Total liabilities and equities$1,010,000

The company expects to collect the beginning balance of accounts receivable in February.In

general, 45% of the company's sales are on a cash basis.Of the credit sales, 40% are paid in the

following month, and 60% are paid in the second month after the sale.

The accounts payable at the beginning of the year must be paid in February.All materials are

purchased on credit and paid for in the following month.

The long-term debt has an annual interest rate of 12%.Interest payments of 1% of the principal

are made each month.The long-term debt is not due for another five years.

Becky Brewing Company makes two different types of beer, an budweiser and a budlight.The ale is a

lighter beer that requires fewer ingredients than does the darker and heavier porter.The input

requirements for a case of beer for each type of beer is as follow:

For Making budweiser

MaterialQuantity per caseCost

Hops5 lb.$0.50/lb.

Yeast1 oz.0.20/oz.

Sugar0.5 lb.0.40/lb.

Bottles240.20/bottle

For Making budlight

MaterialQuantity per caseCost

Hops10 lb.$0.50/lb.

Yeast1 oz.0.20/oz.

Sugar0.8 lb.0.40/lb.

Bottles240.20/bottle

Electricity$75,000

Administrative115,000

Indirect labor65,000

Rent70,000

Depreciation80,000

MonthCases Budweiser Cases budlight

February17,00020,000

March 19,00026,000

April 25,00028,000

May 24,00030,000

make an income statement .