Turn Toy Company Cash and Balance Sheet Analysis The specific work content is in the attachment
(a) An estimated income statement showing the effects of the expected transactions for the second quarter and third quarter
(b)Forecasts of collections from accounts receivable by months and of disbursements by months
( c ) A summary cash statement , showing the amount of bank loans and the repayment of them ; this statement should also show the expected cash balance at September 30 .
( d ) An estimated balance sheet showing the expected financial position of the Illinois Novelty Company at September 30
( e ) Upon completion , you will have three income statements and two balance sheets . Make a complete comparative financial analysis involving these four statements . Easy – Turn Toy Company
Income Statement
Quarter endd June 30, 1985
Revenue
Gross: Billing (120,000 units at $3 each)
Less: Provisions for uncollection
Discount taken by customers
Revenue from operations
Beginning Inversion@$2.10
Expenses
Factory cost of goods (160,000 UNITS PRODUCED)
Materials appropriated to production
Direct Labor costs incurred
Factory overhead
Variable costs:
Fixed Costs
Total Factory costs incurred
Less: Unsold inventory of finished goods 40,000@2.10
Factory costs of goods sold
Selling expenses(Which vary proportionately with sales)
Administration costs and expenses (fixed)
Total expenses
Net Margin from operations
Interest
Earnings Before taxes
Income Taxes
Net Profits
Indirect Labor
Power
Supplies, Misc.
Supervision
Property taxes
Depreciation
Insurance
Miscellaneous
$
$
$
360.000
7.200
2.160
$
9.360
$
350.640
$
$
160.000
128.000
$
$
$
16.000
6.400
9.600
$
32.000
$
$
$
$
$
6.000
3.000
3.000
300
2.700
$
15.000
$
$
335.000
84.000
$
251.000
$
$
60.000
12.000
$
323.000
$
27.640
$
$
$
$
750
2.230
6.115
6.115
Easy – Turn Toy Company
Income Statement
Quarter endd June 30, 1985
Revenue
Gross: Billing (200,000 units at $3 each)
Less: Provisions for uncollection
Discount taken by customers
$
$
$
600.000
12.000
3.600
Revenue from operations
Beginning Inversion@$2.10
Expenses
Factory cost of goods (250,000 UNITS PRODUCED)
Materials appropriated to production
Direct Labor costs incurred
Factory overhead
Variable costs:
Indirect Labor
Power
Supplies, Misc.
$
$
250.000
200.000
$
$
$
25.000
10.000
12.000
Fixed Costs Supervision
Property taxes
Depreciation
Insurance
Miscellaneous
$
$
$
$
$
6.000
3.000
3.000
300
2.700
Total Factory costs incurred
Less: Unsold inventory of finished goods 50,000@2.10
$
$
512.000
105.000
Factory costs of goods sold
$
407.000
Selling expenses(Which vary proportionately with sales)
Administration costs and expenses (fixed)
$
$
100.000
12.000
$
$
$
$
750
2.230
6.115
6.115
Total expenses
Net Margin from operations
Interest
Earnings Before taxes
Income Taxes
Net Profits
$
15.600
$
584.400
$
47.000
$
15.000
$
519.000
$
65.400
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