Mansfield Cocporatimn (Financuar forecautice with seasual production) (LoN 3) The diefcult part of solviat a ptoblem of this nature nin to know what to do with the infurmation coetained within a itory neoblem. Therefore, this problem will be casier to complele if yoa reby on E Ghapter 4 for the fonmie of all required schedales. The Marab Cocporation makes standardsise Zerneh fastenem. Which it sell for $155 per thooand. Mr. Manh w the majveity uwner and manages the inventiry and finances of the company. He ectimates ales for the following months to be Last year Marih Corporation's sales weres 175,000 in Nonember and \$232,500 in December (1.500000 factenen) Mr. Marsh is preparing foe a mectine with his banker to arrange the finuseing for the tint quartes. Hated on his sike forecast and the quarterly pro forma income statements, a pro forma quarterly balance shcet, and ali necesary supporting setiedules for the fint quarter History ahows that Manh Corporation collects 50 pencent of its accounts reseivable in the nocmal 30day eredit period (the month was 2.600,000 unics. (This was not equal to his desircd twomonth supply.) The majot cost of production is the purchase of raw materiats in the form of stcel rods which are cut, threased, ased nisathed, Lat year. rap material costs wete 552 per 1,000 fasteners, but Mr. Marih has jast been not tiked that material coits huve risen, thicuve January 1, to 560 per L,000 fastebers. The Marih Corporation tses FIFO inventory actounting: Labor costs ate relatincty totataint at 520 per thosisand fasieners, since workers are paid on a piccemork buse Overtead is allocated at 510 per theusand units, ans sellint while interest and taxes are paid quarterly. The corporation usually maintains a minimuit cash hatance of $25,000, and it pets its owees cath itto marketable secuntice. The average tax rate is 40 percent, and Mr. Marsh lasually pays od 50 percetat of net income in dividesids to stockholder. Markezahle securitier are sold before ftends are boerowed when a cash shortage is faced, Ienoec the instrest on ass shorterm borrupings. Interest of 58,000 on the longterm debt is paid in March. but is is allocated over cach month for actounting purposes. Twes and dividends are gaid in Maret. As of yearend, the Marst Corponation balance sheet was as follows: As of yearend. tho Macsh. Cocporatiod balance sheet was as folloey Mansfield Cocporatimn (Financuar forecautice with seasual production) (LoN 3) The diefcult part of solviat a ptoblem of this nature nin to know what to do with the infurmation coetained within a itory neoblem. Therefore, this problem will be casier to complele if yoa reby on E Ghapter 4 for the fonmie of all required schedales. The Marab Cocporation makes standardsise Zerneh fastenem. Which it sell for $155 per thooand. Mr. Manh w the majveity uwner and manages the inventiry and finances of the company. He ectimates ales for the following months to be Last year Marih Corporation's sales weres 175,000 in Nonember and \$232,500 in December (1.500000 factenen) Mr. Marsh is preparing foe a mectine with his banker to arrange the finuseing for the tint quartes. Hated on his sike forecast and the quarterly pro forma income statements, a pro forma quarterly balance shcet, and ali necesary supporting setiedules for the fint quarter History ahows that Manh Corporation collects 50 pencent of its accounts reseivable in the nocmal 30day eredit period (the month was 2.600,000 unics. (This was not equal to his desircd twomonth supply.) The majot cost of production is the purchase of raw materiats in the form of stcel rods which are cut, threased, ased nisathed, Lat year. rap material costs wete 552 per 1,000 fasteners, but Mr. Marih has jast been not tiked that material coits huve risen, thicuve January 1, to 560 per L,000 fastebers. The Marih Corporation tses FIFO inventory actounting: Labor costs ate relatincty totataint at 520 per thosisand fasieners, since workers are paid on a piccemork buse Overtead is allocated at 510 per theusand units, ans sellint while interest and taxes are paid quarterly. The corporation usually maintains a minimuit cash hatance of $25,000, and it pets its owees cath itto marketable secuntice. The average tax rate is 40 percent, and Mr. Marsh lasually pays od 50 percetat of net income in dividesids to stockholder. Markezahle securitier are sold before ftends are boerowed when a cash shortage is faced, Ienoec the instrest on ass shorterm borrupings. Interest of 58,000 on the longterm debt is paid in March. but is is allocated over cach month for actounting purposes. Twes and dividends are gaid in Maret. As of yearend, the Marst Corponation balance sheet was as follows: As of yearend. tho Macsh. Cocporatiod balance sheet was as folloey
