Liabilities and Stockholders' Assets: Equity: Cash and marketable securities 228 366 169 Accounts payable and accruals 361 324 312 Accounts receivable 188 181 157 Notes payable 140 103 61 Inventory 404 398 349 Accrued taxes 56 88 109 Other current assets 18 10 5 Total current liabilities 557 515 482 Total current assets 838 955 680 Property, plant, and equipment 4000 3358 2976 Long-term debt 457 379 283 Less: Accumulated depreciation 2000 1826 1608 Total liabilities 1014 894 765 Common Stock (98,051,400 Net property, plant, and equipment 2000 1532 1368 shares) 490 487 483 Goodwill and other assets 1280 1280 1280 Additional Paid-in capital 2439 2222 1982 Retained earnings 270 179 98 Total assets 4118 3767 3328 Treasury stock -95 -15 0 Total stockholders' equity 3104 2873 2563 Total liabilities and equity 4118 3767 3328 # of shares 98051400 97302600 96521200 estimate 2020 2019 2018 competitor Sales (net sales) $2,013 $2,450 $2,733 7564 Cost of goods sold 1400 1689 1765 3883 Gross profit 613 761 968 3681 Selling, general, and administrative expenses 125 98 91 105 Earnings before Interest, taxes, depreciation, and amortization (EBITDA) 488 663 877 3576 Depreciation and amortization 174 218 259 743 Earning before interest and taxes (EBIT) Operating income (loss) 314 445 618 2833 Interest expense 141 137 125 207 Earnings before taxes (EBT) 173 308 493 2626 Taxes (34%) 59 105 168 893 Net earnings (loss) Net Income 114 203 325 1733 Additional Information: You learn that 30 % of freight charges are included in the purchases figure and should be split equally among the two products. 40 % of the selling and administrative costs are due to administration. Perform a new calculation based on this new Information. 1 Allocated the costs based on this new information Allocated Cost Purchases Freight charges Selling Costs General Admin Costs Depreciation Total Costs of Products Number of Products Cost per Product Standard Loot Box Deluxe Loot Box Total 2 Determine the Profit Margins per product based on the allocations above Sales Less: Cost of Products Profit % Profit (Profit/ Sales) Standard Loot Box Deluxe Loot Box Product Type Largo Global Production and Cost Information 2020 Standard Loot Box Volume (Number of Produ $ Deluxe Loot Box 80 20 18.20 $ 27.85 Selling Price Per Unit Total Sales Cost of Sales Selling and Admin Charges Depreciation Purchases Gross Profit 1 Determine Purchases Cost of Sale Plus: Closing Inventory Less: Opening Inventory Purchases 2020 2 Use traditional Allocation Method to Allocate Allocated Cost Purchases Selling and General Admin Depreciation Total Cost of Products Number of Products Cost per Product Total Costs 3 Determine the Profit Margins per product Standard Loot Box Deluxe Loot Box Split Based on volumes sold Standard Loot Box Deluxe Loot Box Total Sales Less: Cost of Products Profit %Profit (Profit Sales Half half Half half Total Cost of Prouducts Number of Products