(purchased equpiment= 200,000)

Events Acquired $550,000 by signing a note payable with a local bank Sold 25,000 shares of $22 Common Stock for $1,500,000 Purchased Equipment Purchased Inventory on Account - 25.000 Units at $1.15 per unit 5a. Sold 15,000 units at $3.50 on Account COGS for Sales on Account Collect $70,000 on Account Pald $17.250 of Accounts Payable Purchased Inventory on Account170.000 Units at $1.50 per unit Soid 175.000 units of $3.50 on Account COGS for Sales on Account Collect $472,500 on Account Poid $118.600 of Accounts Payable Purchased Inventory on Account_275.000 Units at $1.45 per unit Soid 200,000 units of $3.50 on Account COGS for Sales on Account Collect $735,000 on Account Paid $294.150 of Accounts Payable Purchased Inventory on Account 300.000 units of $1.15 per unit Pald Sales & Marketing Expenses of 530,000 Poid Operating Expenses of $75.708 Pald Wege Expenses of $40.000 Pala Product Line Research & Deve opment Expenses of $150.000 Poid Advent's ng Expenses of $87.500 Made the yeary requirea payment on the note payable. The note carries a 7% interest rate and requires payments of $50.000 plus interest each December 31. Record Yr 1 Deprecaton on Equpment with Savage Vaue of $38.000 & useful ilfe of 7 yrs Decored a $10.000 cash av dere for stockholders Pod a $10,000 cosh av den for stockho des Ba ance at end of 0 20 10 Horizontal Bal Sheet - Blank Flexible Budget Master Budget at Actual Units Sold in Year 1 Actual Units Sold+ 25,000 Actual Units Sold +50,000 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Sales & Marketing Operating costs Wages Research & Development Expense Advertising Expense Depreciation Exp Interest Expense Net Income Inventory Production use ending inventory from CORRECTED horizontal balance sheet for beginning inventory for the Beginning Inventory + Purchases - Estimated COGS Desired Ending *actual units at weighted average COGS/unit Purchases Note: Calculate next year's estimated purchases for desired ending inventory of 535,000, assuming your ending inventory from the horizontal balance sheet is your beginning inventory for the next year. For Estimated COGS, use the weighted average COGS and last year's actual units Breakeven Calcuation BEFC/ Contribution B D 1 1 Income Statement Year 1 2 3 4. Sales Revenue 5 Less: Cost of Goods Sold 6 Gross Margin $ 7 9 10 1 12 8 Less: Expenses Sales & Marketing Operating Costs Wages Research & Development Expense 13 Advertising Expense Depreciation Expense 15 Interest Expense 16 Total Operating Expenses 17 18 Net Income (Loss) 19 14 $ $ 20