Direct Materials Used:

Beginning ------------------------------------
Purchases ------------------------------------
Total ------------------------------------ 811,000.00
Ending ------------------------------------
Direct Labor ------------------------------------ 492,000.00
Factory Overhead (Indirect Labor and Materials)
Indirect Labor --------------------- 198,000.00
SSS ------------------------------------49,200.00
Power, heat and Light ----------------------- 135,600.00
Depreciation ------------------------------------ 140,400.00
Prepaid Tax ------------------------------------52,800.00
Supplies ------------------------------------61,200.00 637,200.00
Work in Process, Total -------------------------------- 1,940,200.00
Work in Process, Beginning -------------------------- 172,000.00
Less: Work in Process end--------------------------- -38,248.00
TotallGoods Manufactured -------------------------- 2,073,952.00
Finished Goods, Beginning -------------------------- 257,040.00
Total goods Available purchase --------------------- 2,330,992.00
Finished Goods, end ---------------------------------- -352,368.00
Total Cost of Goods Sold ----------------------------- 1,978,624.00
Browning Manufacturing Company
Projected Statement Cost of Goods Sold
Year 2010
Beginning : 110,520 Beginning : 172,200 Beginning : 257,040
Purchases : 825,000 Marerials Used : 811,000 Materials Used: : 811,000 Cost of Goods Manufactured: : 1,901,952
Cost of Goods
Manufactured:
: 1,901,952
Cost of
Goods Sold
:
Direct Labor : 492,000
Manufacturing Overhead : 637,200
Materials
End
: 124,520 2,112,400 2,158,992
Total Cost of Goods
Placed in Process end:
: 210,448
Goods Available for
Sale end
: 352,368
Beginning : 118,440 144,000 Beginning : 311,760 Collections : 2,604,000
6) 264,000 78,000 Credit Sales : 2,562,000 Sales returs and Allowances : 19,200
7) 2,604,000 874,800 Sales Discounts : 49,200
522,000
38,400 2,873,760 2,672,400
788,400
9,000
52,200
36,000
2,986,440 2,542,800 End : 201,360
End : 443,640
2,562,000 Beginning : 66,720
Add Pre-payment : 78,000 Used pre-paid tax and insurance : 52,800
End : 91,920
Beginning : 2,678,400 Beginning : 907,200
Purchases : 144,000 Current Dep Expense : 140,400
End : 2,822,400 End : 1,047,600
Beginning : 185,760 Beginning : 288, 840
Payment : 788,400 Purchases : 891,000 Borrowings : 264,000
End : 288,360 End : 552, 840
Beginning : 9,000 Beginning : 829,560
Payment : 52,200 Income Tax Expense:: 5,800 Dividends : 36,000 Net Income : 68,576
End : 5, 800 End : 862,136
Income Tax Payable Retained Earnings
Sales Pre-Paid Tax Insurance
Manufacturing Plant and Equipment Accumulated Depreciation
Accounts Payable Note Payable
Cash and Marketable Securities Accounts Receivable
T acounts
Browning Manufacturing Company
Materials Work In Process Finished Goods
1,806,624
T acounts
Browning Manufacturing Company
Finished Goods
Assets
Current Assets:
Cash and Marketable Securities $495,840
Accounts Receivable (net of allowance for doubtful accounts) $239,760
Less allowance for bad debt 19,200 220,560
Inventories:
Materials 124,520
Work in process 172,200
Finished goods 352,368
Supplies 22,080 671,168
Prepaid taxes and insurance 91,920
Total current assets 1,479,488
Other assets:
Manufacturing plant at cost 2,822,400
Less: Accumulated depreciation 1,047,600 1,774,800
Total Assets $3,254,288
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts Payable $288,360
Notes payable 552,840
Income taxes payable 52,200
Total current liabilities $893,400
Shareholders' equity:
Capital Stock 2,360,888
Total Liabilities and Shareholders' Equity 3,254,288
Browning Manufacturing Company
Projected Balance Sheet
December 31, 2010
SALES 2,562,000
Less: Sales Returns and Allowances P 19,200
Sales Discount 49,200 68,400
NET SALES 2,493,600
Less: Cost of Sales (per schedule) 1,806,624
Gross Margin 686, 976
Less: Selling and Admin Expense 522, 000
Operating Income 164, 976
Less: Interest Expense 38,400
Income Before Tax Expense 126, 576
Less: Estimated Income Tax Expense 58,000
NET INCOME 68,576
Browning Manufacturing Company
Income Statement
For the Period Ending December 31, 2010
Question # 2
2009 2010
Accounts Receivable Turn Over 50.9357 29.47401 This ration means its improving because in 2010 its ratio was 29 days. It means that the cycle for its receivables is improving
Cash Its ok but the cash can be used to reinvest to the business
Finished Goods Inventory Its ok still manegable but it will be better if it will use its inventory well because if there is a lot of inventory cash
is sleeping and money is wasted, interest is being accumulated. If it can be sold early much better because you can harvest or pay the interest
Liquidity Ratio 2.179404 1.707599 This ratio means that its capability of meating its obligation is falling. But still it can be enhance because it is still close to 2.0
Acis Test Ratio 1.06 0.90 This means it needs to plan so that it can improved its financial position
Day's Cash 20.30521 66.77402 Cash can be reinvested because there is a concept of cost of money and infalation
Inventory Turnover 6.101307 5.127094 The company needs to plan better because many company fall because of miss management of its inventory
Gross Profit Ratio 30% 28% This ratio can still be improved its not yet that bad but with careful planning and better positioning they can turn it around
Profitability Ratio 5% 3% 3% percent is not bad but if it continue to decline it will be terible
Question # 3
The goal of the company can't be achieved. The company should optimise its inventory, costing and sales. It should improve its sales plan and study their price versus its cost of producing
Question #4
The goal can be achieved. To improve its turnover they should plan their production carefuly so that its inventory will not go up.
More so it should improve it sales so that their profit can go up and maximize the time
Question #5
As we have seen its standing has gone down but it is still tolerable, it has enough assets to pay off its liabilities but in the long run they should improve it
The company should improve its ratios because it is the way that banks or other finnacial institution can annalyze the progress of the business