Calculate the projected net income/(loss) for the first year. This should be in the form of an simple income statement including captions for revenue, cost of goods sold (do not round.), gross profit, operating expenses, and net income/(loss). All operating expenses must be listed individually. Do not round.
|
Account Name
|
Annual Amount
|
|
Office Supplies
|
$500
|
|
Factory Utilities
|
$2400
|
|
Sales Commissions
|
$40000
|
|
Factory Equipment Depreciation
|
$500
|
|
Factory Rent
|
$5000
|
|
Advertising
|
$12000
|
|
Factory Manager's Salary
|
$35000*
|
|
Indirect Labor
|
$35000
|
|
Office Utilities
|
$600
|
|
Factory Insurance
|
$3600
|
|
Office Maintenance (Annual Contract)
|
$200
|
|
Sales Salaries
|
$60000*
|
|
Office Equipment Depreciation
|
$1200
|
|
Indirect Materials
|
$5000
|
|
Freight-Out
|
$200000
|
|
Factory Equipment Repairs (based on expected quarterly service calls)
|
$800
|
Each flower costs $8.14 to manufacture. A worker can make 12 flowers an hour. They work an 8 hour work day. There are 5 workers. Each worker is paid $14.25 an hour and work 1952 hours a year. The goal is to produce 100,000 in a year with no ending inventory left over. Flowers sold at 15.75 per flower.