Data Sheet20132012Cash and Cash Equivalents1,929.002,494.00Receivables, net1,398.001,413.00Inventory11,512.00Other Current Assets895.00900.00Property and Equipment, at cost39,064.0038,491.00Accumulated Depreciation and Amortization(15,716.00)(17,473.00)Goodwill1,289.001,046.00Deferred Tax Asset88.00473.00Accounts Payable5,797.005,192.00Accrued Salaries and Related Expenses1,428.001,200.00Sales Taxes Payable396.00472.00Deferred Revenue1,337.001,262.00Income Taxes Payable12.00(107.00)Current Installments of Long-Term Debt33.00(783.00)Other Accrued Expenses1,746.001,794.00Long-Term Debt, excluding current installments14,691.009,475.00Other Long-Term Liabilities2,042.002,029.00Deferred Tax Liability545.00Paid-In Capital8,402.007,948.00Retained Earnings23,180.0020,038.00Accumulated Other Comprehensive Income46.00397.00Treasury Stock(19,194.00)(10,694.00)Common stock88.0088.00Net Sales78,812.0074,754.00Cost of Sales48,912.00Selling, General and Administrative16,597.0016,508.00Depreciation and Amortization1,627.001,568.00Interest and Investment Income(12.00)(87.00)Interest Expense711.00632.00Provision for Income Taxes(3,082.00)(2,686.00)Foreign Currency Translation Adjustments100.00Cash Flow Hedges, net of tax(12.00)5.00Other Comprehensive Income(10.00)(1.00)Dividends(2,243.00)(1,743.00)Tax rate40%40%Shares Issued Under Employee Stock Plans103.00678.00Tax Effect of Stock-Based Compensation123.0082.00Restricted Stock228.00222.00Repurchases of Common Stock(8,500.00)(4,000.00)Additional Info:Cash Sales4,523.004,356.00Collections on Receivables6,739.006,038.00Purchases(1,332.00)(1,276.00)Wages(987.00)(905.00)Payments to Suppliers(1,028.00)(1,121.00)Tax Payments(275.00)(204.00)Interest payments(12.00)(10.00)Capital Expenditures(1,389.00)(1,312.00)Payments for Businesses Acquired(206.00)(170.00)Proceeds from Sales of Property and Equipment88.0050.00Proceeds from Long-Term Borrowings5,222.000.0Repayments of Long-Term Debt(1,289.00)(32.00)Repurchases of Common Stock(8,546.00)(3,984.00)Proceeds from Sales of Common Stock241.00784.00Cash Dividends Paid to Stockholders(2,243.00)(1,743.00)Other Financing Activities(37.00)(59.00)

Week 2Week #2-With the general data provided the following Financial Statements for ABC Company:-Balance Sheet-Income Statement-Calculate Cost of Goods Sold Using Average Cost Method-Calculate Depreciation Expense using the straight-line method-Calculate Deferred tax asset/liabilityABC CompanyConsolidated Balance SheetFor the Year Ended December 31, 201320132012ASSETS:Current Assets:Cash and Cash Equivalents1,929.002,494.00Receivables, net1,398.001,413.00(15.00)Inventory11,061.8311,512.00(450.17)Inventory Correction1,285.000.0Other Current Assets895.00900.00(5.00)Total Current Assets16,568.8316,319.00Property and Equipment, at cost39,064.0038,491.00Less: Accumulated Depreciation and Amortization(15,716.00)(17,473.00)1,757.00Accumulated depreciation correction(1,505.00)0.0Net Property and Equipment21,843.0021,018.00Goodwill1,289.001,046.00Deferred Tax Asset690.00473.00Total Assets40,390.8338,856.00LIABILITIES AND STOCKHOLDERS EQUITY:Current Liabilities:Accounts Payable5,797.005,192.00605.00Accrued Salaries and Related Expenses1,428.001,200.00228.00Sales Taxes Payable396.00472.00Deferred Revenue1,337.001,262.0075.00Income Taxes Payable12.00(107.00)119.00Current Installments of Long-Term Debt33.00(783.00)Other Accrued Expenses1,746.001,794.00(48.00)Total Current Liabilities:10,749.009,030.00Long-Term Debt, excluding current installments14,691.009,475.00Other Long-Term Liabilities2,042.002,029.0013.00Deferred Tax Liability514.00545.00(31.00)Total Liabilities:27,996.0021,079.00STOCKHOLDERS EQUITY:Common Stock88.0088.00Paid-In Capital8,402.007,948.00Retained Earnings23,052.8320,038.00Accumulated Other Comprehensive Income46.00397.00Treasury Stock(19,194.00)(10,694.00)Total Stockholders Equity12,394.8317,777.00Total Liabilities and Stockholders Equity40,390.8338,856.00ABC CompanyIncome StatementFor the Year Ended December 31, 201320132012NET SALES78,812.0074,754.00Cost of Goods Sold51,417.0248,912.00C124GROSS PROFIT27,394.9825,842.00Operating Expenses:Selling, General and Administrative16,597.0016,508.00Depreciation and Amortization1,627.001,568.00Total Operating Expenses18,224.0018,076.00OPERATING INCOME9,170.987,766.00Interest and Other (Income) Expense:Interest and Investment Income(12.00)(87.00)Interest Expense711.00632.00Interest and Other, net699.00545.00EARNINGS BEFORE PROVISION FOR INCOME TAXES8,471.987,221.00Income Taxes(3,082.00)(2,686.00)NET INCOME5,389.984,535.00(A) Depreciation Expense Using Straight-Line Method-ABC Company has the following assets acquired on January 1, 2013 requiring depreciation calculation:AssetCostLifeAnnual Dep. ExpensePlant with 30 year life at a cost of $660,000660,00030$22,000Land at a cost of $2,250,0002,250,0000.0Machinery and Equipment with 20 year life at a cost79,00020$3,950of 79,000.Truck with a life of 7 years at a cost of $42,00042,0007$6,0003,031,000$31,950Journal EntryDebitCreditAmount $Amount $Depreciation Expense$31,950Accumulated Depreciation on Plant$22,000Accumulated Depreciation on Machinery & equipment$3,950Accumulated Depreciation on Truck$6,000(B) Inventory Calculation-A physical inventory on December 31, 2013, shows 810 units on hand.Calculate Cost of Goods Sold (COGS) using average cost.PurchasesUnitsCostTotalBeginning Inventory80014.39$11,512January 5, 201495013.46$12,787PurchaseMarch 25, 201495012.81$12,170PurchaseJune 8, 201474513.65$10,169PurchaseSeptember 15, 201462513.25$8,281PurchaseDecember 15, 201450514.97$7,560Purchase4,575$62,479Total PurchasesAverage CostCOGS as of 12/31/20133,76551,417.02Ending Inventory81011,061.83Entry to update CGS:Ending Inventory11,061.83Cost of Goods Sold51,417.02$50,967$11,512Journal EntryDebitCreditCost of Goods Sold51417.02Inventory51,417.02First in First OutCost of Goods Sold3,76550,877.75Ending Inventory81011,601.10Last in First outCost of Goods Sold3,76550832.25Ending Inventory81011646.60Beginning Inventory + Inventory Purchases End Inventory = Cost of Goods Sold(C ) Error Corrections-(1) An error was discovered during 2013 relating to the understatement of depreciation expense in 2011resulting in a Prior Period Adjustment of $1,505 before taxes.(2) ABC Company changed its method of valuing inventory during 2013. The cumulative increase in incomefrom the change in inventory methods was $1,285 before taxes.Journal EntryDebitCreditAmount $Amount $Retained Earnings$903Deferred Tax Asset$602Accumulated Depreciation$1,505Journal EntryDebitCreditInventory$1,285Deferred Tax Liability$514Retained earnings$771