balance sheet and income statement

Mr. Bartlett then set down the following estimates as a beginning step in furnishing the rest of the information desired: 1. Expected sales, all to be received in cash by the end of the first year of operation, $168,000 Expected additional purchases of raw materials and supplies during the course of this operating year, all paid for in cash by end of year, $54,000 2. 3. Expected borrowing from the bank during year but loans to be repaid before close of year, $4,000 4. Interest on these loans, $300 Expected payroll and other cash expenses and manufacturing costs for the operating year: S66,000 of manufacturing costs (excluding raw materials and supplies) plus S12,000 for selling and administrative expenses, a total of $78,000 New equipment to be purchased for cash, S2,000 Expected inventory of raw materials and supplics at cost of period, at cost, $10,000 No inventory of unsold switches expected as the end of the period. All products to be manufactured on the basis of firm orders received none to be produced for inventory All experimental and organization costs, previously capitalized, to be charged against income of the operating year 5. 6. 7. 8. 9. Estimated depreciation of machinery, S1,200 10. Dividends paid in cash, $6,000 11. Estimated tax expense for the year, S8,450. Ten percent of this amount would not be due until early in the following year