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Unformatted text preview: 68 Accrued Expense 51 Provision for Income Taxes 12 Long Term Debt, current portion 7 Net Income 56 Current Liabilities 805 Long Term Debt 43 Total Liabilities 848 Net Worth 371 Total Liabilities & Net Worth 1219 BUTLER LUMBER COMPANY ASSUMPTIONS Purchases have averaged approx. 75.5% over the past 3 years. Total cost of goods sold has averaged 72% of net sale over the past 3 years. Interest was raised in proportion to revenue. Accounts Receivable has risen on average .7% each year. Inventory was calculated using the inventory turnover rate averaged over 3 years. Various figures were then extended because no apparent changes were needed based on readings and statement analysis. As a corporation, Butler was taxed at the rate of 15% on its first $50,000 of income, 25% on the next . 25,000 of income, and 34% on all additional income . above $75,000...
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This note was uploaded on 05/11/2008 for the course AEM 2220 taught by Professor Perez,p.d. during the Spring '06 term at Cornell University (Engineering School).
- Spring '06