Seventy percent of the parts are received by Alpha Tech one month prior to sale

Seventy percent of the parts are received by alpha

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be 35 percent of sales. Seventy percent of the parts are received by Alpha-Tech one month prior to sale, and 30 percent are received during the month of sale. Historically, 80 percent of accounts payable has been paid one month after receipt of the purchased components, and the remaining 20 percent has been paid two months after receipt.
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Hourly wages and fringe benefits, estimated to be 30 percent of the current month’s sales, are paid in the month incurred. General and administrative expenses are projected to be $15,820,000 for the year. The breakdown of these expenses is presented in the following schedule. All cash expenditures are paid uniformly throughout the year, except the property taxes, which are paid in four equal installments at the end of each quarter. 20x5 Forecasted General and Administrative Costs (in thousands) Salaries and fringe benefits $ 3,300 Promotion 3,800 Property taxes 1,450 Insurance 1,810 Utilities 1,800 Depreciation 3,660 Total $ 15,820 Income-tax payments are made at the beginning of each calendar quarter based on the income of the prior quarter. Alpha-Tech is subject to an income-tax rate of 40 percent. Alpha-Tech’s operating income for the first quarter of 20x5 is projected to be $3,300,000. The company pays 100 percent of the estimated tax payment.
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  • Spring '14
  • Zeeshan
  • Generally Accepted Accounting Principles, Alpha-Tech

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