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Managerial accounting Discussion 1

# Managerial accounting Discussion 1 - ASSETS Even t CASH...

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ASSETS EQUITY Cash Flow Even t CASH Inventory Pro duct ion Equ ipm ent Office Equipment Common Stock Retained Earnings REVENU E EXPEN SES NET INCOM E 1. 2360 2360 2,360 FA 2. (720) 720 (720) OA 3. (1800) 1800 (1800) OA 4. (540) 540 (540) IA 5. (180) (180) 180 (180) (180) OA 6. (144) 144 (144) IA 7. 2400 2400 2400 2400 2400 OA 8 (2040) (2040) 2040 (2040) Total 1376 480 540 144 2360 180 2400 2220 180 1376

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Materials + production workers wages + production rental / Total number of units produced 720 + 1800 + 540 = 3060 / 300 = \$10.20 per Unit Price per Unit X Toatl Units Produced = Cost of Goods Sold \$10.20 X 200 = 2040 Income Statement Sales Revenue: \$2,400 Cost Of Goods Sold: (2040) Gross Margin \$360 G, S, & A Expenses Salaries Expense: \$180 Net Income \$180 BALANCE SHEET Cash: \$1376 Finished goods Inventory: \$480 Production Rental: \$540 Office Equip. Rental: \$144 Total Assets: \$2,540 Stockholders’ Equity Common Stock: \$2,360 Retained earnings: \$180
Total Stockholders Equity: \$2,540 STATEMENT OF CASH FLOWS Operating activities Inflow from Revenue: \$2,400 Outflow For inventory: (\$2,520) Out Flow For S & A Salaries: (180) Net Inflow From Operating Activities: (\$300) Investing activities Outflow For production and office Equip.: (\$684) Financing activities:
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