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    CASE 6-1 - Browning Manufacturing Company

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    Weng Torres Allon
    The document contains projected financial statements for Browning Manufacturing Company for the year 2010, including a statement of cost of goods sold, income statement, and balance sheet. It also includes a comparison of accounts from 2009 to 2010. The summary shows that Browning Manufacturing is forecasting a notable increase in cash and marketable securities of 319% from 2009. Accounts receivable is projected to decrease, meaning more cash will be collected. Accounts and notes payable are also expected to increase substantially by 55% and 91%, respectively.

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    CASE 6-1 - Browning Manufacturing Company

    Uploaded by

    Weng Torres Allon
    1K views4 pages
    The document contains projected financial statements for Browning Manufacturing Company for the year 2010, including a statement of cost of goods sold, income statement, and balance sheet. It also includes a comparison of accounts from 2009 to 2010. The summary shows that Browning Manufacturing is forecasting a notable increase in cash and marketable securities of 319% from 2009. Accounts receivable is projected to decrease, meaning more cash will be collected. Accounts and notes payable are also expected to increase substantially by 55% and 91%, respectively.

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    CASE 6-1_Browning Manufacturing Company

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    The document contains projected financial statements for Browning Manufacturing Company for the year 2010, including a statement of cost of goods sold, income statement, and balance sheet. It also includes a comparison of accounts from 2009 to 2010. The summary shows that Browning Manufacturing is forecasting a notable increase in cash and marketable securities of 319% from 2009. Accounts receivable is projected to decrease, meaning more cash will be collected. Accounts and notes payable are also expected to increase substantially by 55% and 91%, respectively.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views4 pages

    CASE 6-1 - Browning Manufacturing Company

    Uploaded by

    Weng Torres Allon
    The document contains projected financial statements for Browning Manufacturing Company for the year 2010, including a statement of cost of goods sold, income statement, and balance sheet. It also includes a comparison of accounts from 2009 to 2010. The summary shows that Browning Manufacturing is forecasting a notable increase in cash and marketable securities of 319% from 2009. Accounts receivable is projected to decrease, meaning more cash will be collected. Accounts and notes payable are also expected to increase substantially by 55% and 91%, respectively.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    BM 220 MANAGEMENT ACCOUNTING AND CONTROL ALLON, ROWENA T.

    1997-65710

    1.

    Browning Manufacturing Company Projected 2010 Statement of Cost of Goods Sold

    Finished goods inventory, 1/1/10 Work in process inventory, 1/1/10 Materials used Plus: Factory expenses Direct manufacturing labor Factory overhead: Indirect manufacturing labor Power, heat and light Depreciation of plant Social Security taxes Taxes and insurance, factory Supplies Less: Work in process inventory, 12/31/10 Cost of goods manufactured (i.e. Completed) Less: Finished goods inventory, 12/31/10 Cost of goods sold

    257,040.00 172,200.00 811,000.00 492,000.00 198,000.00 135,600.00 140,400.00 49,200.00 52,800.00 61,200.00

    637,200.00 2,112,400.00 210,448.00 1,901,952.00 2,158,992.00 352,368.00 1,806,624.00

    BM 220 MANAGEMENT ACCOUNTING AND CONTROL ALLON, ROWENA T. 1997-65710

    Browning Manufacturing Company Projected 2010 Income Statement

    Sales Less: Sales returns and allowances Sales discounts allowed Cost of goods sold (per schedule) 19,200.00 49,200.00

    2,562,000.00

    Net Sales Less: Gross margin

    68,400.00 2,493,600.00 1,806,624.00 686,976.00 522,000.00 164,976.00 38,400.00 126,576.00 58,000.00 68,576.00

    Selling and Less: administrative expense Operating income Less: Interest expense Income before federal and state income tax Estimated income tax expense Less: Net income

    BM 220 MANAGEMENT ACCOUNTING AND CONTROL ALLON, ROWENA T. 1997-65710

    Browning Manufacturing Company Projected 2010 Balance Sheet

    Assets Current Assets: Cash and marketable securities Accounts receivable (net of allowance for DA) Inventories: Materials Work in process Finished goods Supplies Prepaid taxes and insurance Total current assets Other assets: Manufacturing plant at cost Less: Accumulated depreciation Total Assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Notes payable Income taxes payable Deferred taxes payable Total current liabilities Shareholders' equity: Capital stock Retained earnings Total Liabilites and Shareholders' Equity

    495,840.00 201,360.00 124,520.00 210,448.00 352,368.00 22,080.00

    709,416.00 91,920.00 1,498,536.00

    2,822,400.00 1,047,600.00

    1,774,800.00 3,273,336.00

    288,360.00 552,840.00 5,800.00 52,200.00 899,200.00 1,512,000.00 862,136.00

    2,374,136.00 3,273,336.00

    BM 220 MANAGEMENT ACCOUNTING AND CONTROL ALLON, ROWENA T. 1997-65710

    2. Accounts Sales Sales returns and allowances Sales discounts allowed Cost of goods sold (per schedule) Selling and administrative expense Interest expense Estimated income tax expense Cash and marketable securities Accounts receivable (net) Materials Work in process Finished goods Supplies Prepaid taxes and insurance Manufacturing plant at cost Accounts payable Notes payable Income taxes payable Capital stock Retained earnings 2009 2,295,600.00 17,640.00 43,920.00 1,568,280.00 437,160.00 34,080.00 89,520.00 118,440.00 311,760.00 110,520.00 172,200.00 257,040.00 17,280.00 66,720.00 2,678,400.00 185,760.00 288,840.00 9,000.00 1,512,000.00 829,560.00 2010 2,562,000.00 19,200.00 49,200.00 1,806,624.00 522,000.00 38,400.00 58,000.00 495,840.00 201,360.00 124,520.00 210,448.00 352,368.00 22,080.00 91,920.00 2,822,400.00 288,360.00 552,840.00 5,800.00 1,512,000.00 862,136.00 % 12% 9% 12% 15% 19% 13% -35% 319% -35% 13% 22% 37% 28% 38% 5% 55% 91% -36% 0% 4% Inc/Dec Increase Increase Increase Increase Increase Increase Decrease Increase Decrease Increase Increase Increase Increase Increase Increase Increase Increase Decrease Increase

    From the table above, it is noted that there is a remarkable increase in the Cash and marketable securities account by 319%. Further, there is also a decrease in the Accounts receivable account, which means that there is a increase in cash because of the collections forecasted. On the other hand, the accounts and notes payable accounts also increased by 55% and 91%, respectively.

    3.

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