Sullivan Enterprises, Inc.

Cash

$20,000

Accounts Payable (used exclusively for inventory)

$11,000

Accounts Receivable

10,000

Accruals

800

Inventory

5,000

Notes Payable

1,000

Fix Assets

10,500

Common Stock

19,200

Retained Earnings

13,500

Total Assets

$45,500

Total Liabilities and Equity

$45,500

The following reflects the forecast for 2021.

SE expects sales of $10,000 per month and a Cost of Goods Sold (COGS) of $6,500 per month.The $6,500 per month of COGS can be broken down into $4,500 per month for material costs and $2,000 per month in labor costs.There will be 5 days of labor costs outstanding at the end of the year.(Assume 260 labor days for the year).SE purchases materials 2 month prior to sale and pays for it 1 month after sale.

SE is estimating selling, general, and administrative (SG&A) expenses at $1,500 per month.Depreciation expense is expected to be $500 per month.SE's tax rate is 34% and will pay all taxes owed by the end of 2021.SE's $1,000 notes payable, of which they will pay interest at a rate of 10%, will be paid off at the end of 2021.Their sales are on credit and customers pay SE 1 month after the sale.

SE plans to add equipment at year-end that will cost them $10,000.They plan to pay $1,000 down in cash for the machine and they will issue common stock for the remaining $9,000.

SE will pay out 20% of earnings after taxes (EAT) as a dividend.

Create an income statement and balance sheet for 12/31/21using the spreadsheet under "Files" on Canvas that is entitled "31 Quiz 2 Worksheet.xlsx".

Based on the worksheet, the taxes paid in 2021 is:

Accounts Payable Balance is?

The ending Cash balance is?

Ending Accurals is?