Question

A-Design Inc., a federally incorporated company in Canada and
specialized in the design and management of armrests for the
wheelchairs planned to produce and sell 15,000 armrests at $ 50
the unit in its first year of operation and also projected $ 20,000 for the
advertising, $ 100,000 for electricity costs, $ 240,000 for salaries,
$ 300,000 for production materials, $ 20,000 for overheads,
$ 24,000 for rent and $ 10,000 for depreciation. A-Design has a debt of
$ 100,000 at a simple annual interest rate of 5% and a 25% tax.

1. Produce a table of the different costs of A-Design with their classification.
2. Generate A-Design's income statement at the end of the first year and determine this year's operating profit, pre-tax profit, and net profit.
3. On December 31, 2017, A-Design had the following financial information: $ 320000 in cash, $ 100,000 in inventory, $ 580000 in equipment, $ 500,000 in bank loan, $ 300,000 in accounts payable and $ 100,000 in cash. other liabilities. Produce the report of A-Design Inc. of the year 2017.
4. For the month of January 2016, A-Design Inc. reported in its journal the following financial data: $ 100,000 in sales, $ 10,000 loan, $ 2,000 rent, $ 75,000 in production materials, $ 2,000 in advertising , $ 20,000 of salary and $ 10,000 of electricity. Generate A-Design Cash Flow Statement for January 2016.

Answer 1