PRojected COGSBrowning Manufacturing CompanyProjected Statement Cost of Goods SoldYear 2010Direct Materials Used:Beginning ------------------------------------Purchases------------------------------------Total------------------------------------811,000.00Ending------------------------------------

Direct Labor ------------------------------------492,000.00

Factory Overhead (Indirect Labor and Materials)

Indirect Labor ---------------------198,000.00SSS------------------------------------49,200.00Power, heat and Light-----------------------135,600.00Depreciation------------------------------------140,400.00Prepaid Tax------------------------------------52,800.00Supplies------------------------------------61,200.00637,200.00

Work in Process, Total --------------------------------1,940,200.00Work in Process, Beginning --------------------------172,000.00Less: Work in Process end----------------------------38,248.00TotallGoods Manufactured --------------------------2,073,952.00

Finished Goods, Beginning --------------------------257,040.00Total goods Available purchase ---------------------2,330,992.00

Finished Goods, end -----------------------------------352,368.00Total Cost of Goods Sold -----------------------------1,978,624.00

T Accounts

T acounts Browning Manufacturing Company

MaterialsWork In ProcessFinished GoodsBeginning: 110,520Beginning:172,200Beginning:257,040Purchases:825,000Marerials Used:811,000Materials Used::811,000Cost of Goods Manufactured::1,901,952Cost of Goods Manufactured::1,901,952Cost of Goods Sold:1,806,624Direct Labor:492,000Manufacturing Overhead :637,200Materials End:124,5202,112,4002,158,992Total Cost of Goods Placed in Process end::210,448Goods Available for Sale end : 352,368

Cash and Marketable SecuritiesAccounts ReceivableBeginning:118,440144,000Beginning:311,760Collections:2,604,0006)264,00078,000Credit Sales:2,562,000Sales returs and Allowances:19,2007)2,604,000874,800Sales Discounts:49,200522,00038,4002,873,7602,672,400788,4009,00052,20036,0002,986,4402,542,800End:201,360End:443,640

SalesPre-Paid Tax Insurance2,562,000Beginning:66,720Add Pre-payment:78,000Used pre-paid tax and insurance:52,800

End:91,920

Manufacturing Plant and EquipmentAccumulated DepreciationBeginning:2,678,400Beginning:907,200Purchases:144,000Current Dep Expense:140,400

End:2,822,400End:1,047,600

Accounts PayableNote PayableBeginning: 185,760Beginning:288, 840Payment :788,400Purchases:891,000Borrowings:264,000

End:288,360End:552, 840

Income Tax PayableRetained EarningsBeginning:9,000Beginning:829,560Payment:52,200Income Tax Expense::5,800Dividends:36,000Net Income:68,576

End:5, 800End: 862,136

Balance SheetBrowning Manufacturing CompanyProjected Balance SheetDecember 31, 2010AssetsCurrent Assets:Cash and Marketable Securities$495,840Accounts Receivable (net of allowance for doubtful accounts)$239,760Less allowance for bad debt19,200220,560Inventories:Materials124,520Work in process172,200Finished goods352,368Supplies22,080671,168Prepaid taxes and insurance91,920Total current assets1,479,488Other assets:Manufacturing plant at cost2,822,400Less: Accumulated depreciation1,047,6001,774,800Total Assets$3,254,288Liabilities and Shareholders' EquityCurrent Liabilities:Accounts Payable$288,360Notes payable552,840Income taxes payable52,200 Total current liabilities$893,400Shareholders' equity:Capital Stock2,360,888Total Liabilities and Shareholders' Equity3,254,288

Income Statement

Browning Manufacturing CompanyIncome StatementFor the Period Ending December 31, 2010

SALES2,562,000 Less: Sales Returns and AllowancesP 19,200Sales Discount49,20068,400NET SALES2,493,600 Less: Cost of Sales (per schedule)1,806,624Gross Margin686, 976 Less:Selling and Admin Expense522, 000Operating Income164, 976 Less: Interest Expense38,400Income Before Tax Expense126, 576 Less: Estimated Income Tax Expense58,000NET INCOME68,576

Sheet5Question # 220092010Accounts Receivable Turn Over50.935703926529.4740134745This ration means its improving because in 2010 its ratio was 29 days. It means that the cycle for its receivables is improvingCashIts ok but the cash can be used to reinvest to the businessFinished Goods InventoryIts 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 interestLiquidity Ratio2.17940446651.7075985832This ratio means that its capability of meating its obligation is falling. But still it can be enhance because it is still close to 2.0Acis Test Ratio1.060.90This means it needs to plan so that it can improved its financial positionDay's Cash20.305207981166.7740195561Cash can be reinvested because there is a concept of cost of money and infalationInventory Turnover6.10130718955.1270944013The company needs to plan better because many company fall because of miss management of its inventoryGross Profit Ratio30%28%This ratio can still be improved its not yet that bad but with careful planning and better positioning they can turn it aroundProfitability Ratio5%3%3% percent is not bad but if it continue to decline it will be terible Question # 3The 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 producingQuestion #4The 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 timeQuestion #5As 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 itThe company should improve its ratios because it is the way that banks or other finnacial institution can annalyze the progress of the business