Abc Company

Satisfactory Essays
ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles. The company currently has annual sales of around $1.2 million, a 25% increase from the previous year. The company has an aggressive growth target of reaching $3 million annual sales within the next 3 years. The CEO has been trying to find additional products that can leverage the current ABC employee skill set as well as the manufacturing facilities.
ABC Company's current financial information (before/without expansion) Dec. 31,19X2 Dec. 31,19X1
Cash $50,000 $70,000
Accounts receivable (net) $120,000 $180,000
Merchandise inventory $350,000 $280,000
Property plant, & equipment $400,000 $300,000
Less: Accumulated depreciation $(170,000) $(100,000)
Total assets $750,000 $730,000
Accounts payable $250,000 $210,000
Income taxes payable $40,000 $10,000
Common stock $240,000 $240,000
Retained earnings $220,000 $270,000
Total liabilities & stock, equity $750,000 $730,000 The firm's accrual-basis income statement revealed the following data:
Sales $1,200,000
Cost of goods sold $800,000 selling and administrative expenses $250,000
Depreciation expense $70,000
Income taxes $30,000
Dividends declared and paid during 19X2 $100,000
ABC purchased $100,000 of equipment for cash on August 14. (There was no interest expense.)

I. An overall risk profile of the company based on current economic and industry issues that it may be facing.

II. Current company cash flow
a. You need to complete a cash flow statement for the company using the direct method.
b. Once you’ve completed the cash flow statement, answer the following questions:
1. What does this statement of cash flow tell you about the sources and uses of the company?
2. Is there anything ABC Company can do to improve the cash flow?

3. Can this project be financed with current cash flow from the company?

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Abc Company

    • 454 Words
    • 2 Pages

    ABC Company Types | Pcs. | Switch | 10 | Pc’s | 15 | Servers | 7 | Laptop | 1 | Table 1.1 ABC Company has those given item from Table 1.1 for their network. The topology was compose of 1 server switch, 3 transparent switches, 6 client switches, 15 PC’s (1st,3rdand 5th has 3 units of pc per floor) the rest has only 2 but every floor can accommodate 100 host per floor ,it has also 7 servers (1 TFTP and 6 DHCP servers in every floor) . ABC Company Has 6 floors each floors…

    • 454 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Abc Manufacturing Company

    • 827 Words
    • 4 Pages

    Dr. Clifford Brown ABC CASE AC603 ABC MANUFACTURING COMPANY( due 10/8/2010) “If I were to price this crankshaft any lower than $225,” said Mike Brunner, manager of ABC Company’s Machining division, “I’d be countermanding my order of last month for our sales staff to stop shaving their bids and to bid full cost plus quotations. I’ve been trying for weeks to improve the quality of our business, and if I turn around now and accept this job at $195 or $200 or something less than $225, I’ll be…

    • 827 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Running Head: FINAL As the Controller of ABC Company Johnnisha Burton ACC 206 Principles of Accounting II Anton Narinskiy January 21, 2013 Purpose of the Paper This report’s purpose is to be of assistance to the CEO of ABC Company to determine if the new project should be put into action and the way that it can be within the means financially through presenting information regarding the projected costs…

    • 2082 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Abc Company - 1

    • 1244 Words
    • 5 Pages

    ABC Company Randall K. Howell ACC 206: Principles of Accounting II Don Fey March 4, 2013 The ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles, introducing the new project to build cedar dollhouses by shingle scrap materials for reaching $3 million annual sales within the next 3 years. Explain the overall risk profile of the ABC Company based on current economic and industry issues. In order to help out the CEO I prepare reports that will…

    • 1244 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Risk Factors of ABC Company Risk Factors of ABC Company ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles. The current annual sales of the company are roughly $1.2 million. This is a 25% increase from the previous year. The goal of this company is to reach $3 million in annual sales within the next 3 years. The CEO has decided to expand the product line to include an additional product. The product expansion consists of manufacturing cedar…

    • 1234 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Is ABC suitable for your company? --Using Estrin, Kantor and Albers' contingency grid, If an organization's score puts it in Quadrant three, Is ABC implementation recommended? Explain. Is their method "foolproof?" Abstract Nowadays, we know that activity based costing system assigns overhead costs to products or services products that using a two-stage process, which focuses on activities. ABC is a relatively new and very important topic in managerial accounting. ABC allows us to find a way…

    • 1403 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Abc Classic Pen Company

    • 913 Words
    • 4 Pages

    Individual Project #2 Classic Pen Company Professor Vanover Management 30B 03/12/2013 Assignment #1: Assignment #2: The Production Preparation, Records Maintenance, Computer System Operation, and Records Keeping in Computer were the four new activities Dempsey likely have identified, which Dempsey interviewed the department head in charge of indirect labor and the manager of the Data Center and the Management Information System departments for information. Assignment #3:…

    • 913 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    abc abc abc

    • 282 Words
    • 2 Pages

    duck study held youth heidi hough chic and then you have any questions about this privacy truffles and it will be there fury of the most fix your computer audit committee your mom and dad said he was in the morning terry cloth diapers and it has been suggested reading how much of this information provided to us and then you huffy and I think I'm gonna get it from you can see if they want to get my email try it has been suggested reading how much of the most important thing is that a yes or no deal…

    • 282 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    ABC STEEL COMPANY I – Problem Statement ABC Company’s production backlog had reached such proportions that top management decided not to accept any further business. The company was paying penalties of P50, 000.00 a day due to non-fulfillment of contract delivery dates. II – Statement of the objective Supervisors and Leadmen will be given supervisory training. Also, enhance the planning and scheduling for the production control of any upcoming projects. III - Areas of consideration: As of…

    • 594 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    abc abc abc

    • 816 Words
    • 3 Pages

    so apparently I have to submit a document to get free access to this site so here's a copy and paste wiki entry of wallnuts enjoy A walnut is an edible seed of any tree of the genus Juglans (Family Juglandaceae), especially the Persian or English walnut, Juglans regia. Broken nutmeats of the eastern black walnut from the tree Juglans nigra are also commercially available in small quantities, as are foods prepared with butternut nutmeats from Juglans cinerea. Walnut seeds are a high density…

    • 816 Words
    • 3 Pages
    Good Essays