THIS SHEET IS MEANT ONLY AS A CONVENIENCE.docx

THIS SHEET IS MEANT ONLY AS A CONVENIENCE.docx

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THIS SHEET IS MEANT ONLY AS A CONVENIENCE. THE ACTUAL FACTS PRESENTED UNDER THE "COURSE HOME" SHOULD BE REFERENCED AND UTILIZED. 2013 PARENT ASSUMPTIONS 1 Sales will increase by 10% in 2013. 2 All sales will be on account. 3 Accounts receivable will be 5% lower on 12/31/13 than on 12/31/12. 4 Cost of goods sold will increase by 9% in 2013. 5 All purchases of merchandise will be on account. 6 Accounts payable are expected to be 50,500 in 12/31/2013. 7 Inventory will be 3% higher in 2013 than in 2012. 8 Straight-line depreciation is used for all fixed assets 9 No fixed assets will be disposed of during 2013. Annual depreciation on existing assets is 40,000 per year. 1 0 Equipment was purchased on 1/1/13 for $48,000 cash, with a 10-year life and no salvage. 1 1 Operating expenses other than depreciation will increase by 14% in 2013. 1 2 All operating expenses other than depreciation will be paid in cash. 1 3 Parent's income tax rate is 40%; taxes are paid in four payments on the 15th of April, June, September, and December.
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