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Instructions: Type Amounts from CAP # 1 Financial Statements Name

Enter formulas for Sub-totals and Unit costs.

$ Amounts - Whole dollars; $ per unit - 3 decimal places.

CAP #1 SPREADSHEET

14,960 units

Sales 8,734 units

$ Amounts $ Sub-totals $/un

FIXED COSTS/EXPENSES:

Marketing

Sales Salaries 405,000

Sales Training 86,160

Advertising 297,200

Sales Office Rentals 15,000

Sales Office Operations 60,000

Home Office Selling Expense 24,375

Credit Department Expense 0

Total Marketing Fixed Costs 887,735

General & Administrative

Executive Salaries 90,000

Secretarial and Clerical 10,000

Depreciation, Building 1,666

Depreciation, Furniture & Fixtures 2,500

Supplies 5,000

Total General & Administrative 109,166

Manufacturing

Indirect Production Labor 145,000Production Planning & Control 10,000

Purchasing and Receiving 106,149

Factory Insurance 2,000

Training 5,000

Depreciation, PET 30,833

Depreciation, Building 6,667

Utilities 3,500

Supplies 1,000

Total Manufacturing 310,149

Total Fixed Costs/Expenses 1,307,050

VARIABLE COSTS/EXPENSES $ Amounts $ Sub-totals CoMarketing

Sales Commissions 209,607

Sales Travel 47,413

Packaging 17,468

Bad Debts 0

Credit Department Expense 0

Total Marketing Unit Variable Costs 274,488

General & Administrative

Travel 21,310

Supplies 8,734

Total General & Administrative Unit Variable Costs 30,044

Manufacturing

Material Ex-11 367,296

Material Wy-22 347,300

ALL Materials 714,596

Actual Level Of Activity for March: Production from Goods Manufactu from Income Statement

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B. Widget Company

Balance Sheet

March 31, 2003

Net

Account GROUP

ASSETS Totals: TOTALS:

CURRENT:Cash $0

Accounts Receivable $0

Allowance for Bad Debts (0) 0

Inventory:

Raw Materials 237,304

Finished Product 674,347 911,651

TOTAL CURRENT ASSETS 911,651

FIXED:

Production Equipment & Tools 3,700,000

Accumulated Depreciation, PET (92,500) 3,607,500

Furniture & Fixtures 300,000

Accumulated Depreciation, F&F (7,500) 292,500

Building 2,000,000

Accumulated Depreciation, Bldg. (25,000) 1,975,000

TOTAL FIXED ASSETS 5,875,000

INVESTMENTS:

Investments in Stock 0 0

TOTAL ASSETS 6,786,651

LIABILITIES

CURRENT:

Accounts Payable $0

Notes Payable - First National Bank 500,000

Notes Payable - Commerce Bank 450,093Accrued Income Taxes Payable (345,532)

TOTAL CURRENT LIABILITIES 604,561

LONG TERM:

Bonds Payable 3,000,000

( 3,000,000 less discount 51,543.63 ) (57,544) 2,942,456

TOTAL LIABILITIES 3,547,017

STOCKHOLDERS' EQUITY

Common Stock (Authorized: 80,000; Issued:30,000) 3,000,000

Premium (Discount) on Common Stock 600,000

Retained Earnings (Deficit) (360,366)

TOTAL STOCKHOLDERS' EQUITY 3,239,634

TOTAL LIABILITIES and STOCKHOLDERS' EQUITY 6,786,651

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B. Widget Company

Income Statement

for the month ending March 31, 2003

Region 1 Region 2 Region 3 Region 4 Total

394,000 525,400 827,400 0 1,746,800COST OF GOODS SOLD 177,864 237,181 373,514 0 788,559

GROSS PROFIT 216,136 288,219 453,886 0 958,241

EXPENSES:

Selling

Sales Salaries 108,000 117,000 180,000 0 405,000

Sales Commissions 47,280 63,039 99,288 0 209,607

Sales Training 30,120 8,760 47,280 0 86,160

Sales Travel 17,730 13,135 16,548 0 47,413

Advertising 92,000 80,200 125,000 0 297,200

Packaging 3,940 5,254 8,274 0 17,468

Bad Debts 0 0 0 0 0

Sales Office Rentals 5,000 5,000 5,000 0 15,000

Sales Office Operations 20,000 20,000 20,000 0 60,000Home Office Selling Expense 5,498 7,331 11,546 0 24,375

Credit Department Expense 0 0 0 0 0

Total Selling Expense 329,568 319,719 512,936 0 1,162,223

General & Administrative

Executive Salaries 20,300 27,070 42,630 0 90,000

Secretarial and Clerical 2,255 3,008 4,737 0 10,000

Depreciation, Building 376 501 789 0 1,666

Depreciation, Furniture & Fixtures 564 752 1,184 0 2,500

Travel 9,850 5,254 6,206 0 21,310

Supplies 3,098 4,131 6,505 0 13,734

Total General & Administrative 36,443 40,716 62,051 0 139,210

TOTAL EXPENSES 366,011 360,435 574,987 0 1,301,433

NET OPERATING INCOME (LOSS) (149,875) (72,216) (121,101) 0 (343,192)

OTHER INCOME (EXPENSE)

Interest Income 0

Other Income 0

Interest Expense (28,181)

Other Expense 0

TOTAL OTHER INCOME (EXPENSE) (28,181)

NET INCOME BEFORE TAXES (371,373)

Income Tax Expense 148,549

NET INCOME (222,824)

SALES

*

* Widgets sell for $200 per unit.

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B. Widget Company

Cost of Goods Manufactured

for the month ending March 31, 2003

NUMBER OF WIDGETS MANUFACTURED: 14,960 Units

Quantity $ Amount Subtotal TOTAL

MATERIALS:

Material Purchases:

Material Ex-11 76,000 $478,800

Material Wy-22 40,000 400,000

45,600 924,400

Beginning Inventory:

Material Ex-11 0 $0

Material Wy-22 2,500 27,500 27,500

Ending Inventory:

Material Ex-11 16,160 $111,504

Material Wy-22 12,580 125,800 237,304

TOTAL MATERIALS USED 714,596

DIRECT LABOR:

Cutting Department 149,600

Assembly Department 90,194

Finishing Department 0

TOTAL DIRECT LABOR: 239,794

MANUFACTURING OVERHEAD:

Variable:

Repairs & Maintenance 29,920Spoilage 27,600 57,520

Fixed:

Indirect Production Labor 145,000Production Planning & Control 10,000

Purchasing and Receiving 106,149

Factory Insurance 2,000

Training 5,000

Depreciation, PET 30,833

Depreciation, Building 6,667 305,649

Mixed:

Utilities 14,720

Supplies 12,220 26,940

TOTAL MANUFACTURING OVERHEAD: 390,109

TOTAL COST OF GOODS MANUFACTURED 1,344,499

no freight for Ex-11

Freight-in See NOTE 1 below

NOTE 1 All freight-in costs are for Wy-22;

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B. Widget Company

Finished Product Inventory

for the month ending March 31, 2003

Units $ Amount

Beginning Inventory March 1, 2003 1,243 118,407

Goods Manufactured 14,960 1,344,499

Goods Available for Sale 16,203 1,462,906

Goods Sold 8,734 788,559

Ending Inventory March 31, 2003 7,469 674,347