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Chart of Accounts
10000	Cash
11000	Accounts Receivable
12000	DM-Plastic
12100	DM - Motors
12150	DM-Wheels
15000	Work-In-Process
15050	Factory Overhead
16000	Finished Goods FG
20000	Accounts Payable
21000	Wages Payable
40000	Sales
50000	COGS

Robust Robots, Inc.
Comparative Balance Sheet- Horizontal Analysis
December 31, 2019 and 2018
Assets		2019		2018		Differents	Percentage
Current Assets:
	Cash	$65,000		$80,000		$ (15,000.00)	-18.75%
	Accounts Receivable, net	$150,000		$100,000		$ 50,000.00	50.00%
	Merchandise Inventory	$135,000		$70,000		$ 65,000.00	92.86%
	Supplies	$9,700		$500		$ 9,200.00	1840.00%
	Prepaid Insurance	$30,000		$10,000		$ 20,000.00	200.00%
	Total Current Assets	$389,700		$260,500		$ 129,200.00	49.60%
Property, Plant, and Equipment:
	Equipment	$500,000		$240,000		$ 260,000.00	108.33%
	Less: Accumulated Depreciation - Equipment	($80,000)		($90,000)		$ 10,000.00	-11.11%
	Total Property, Plant, and Equipment	$420,000		$150,000		$ 270,000.00	180.00%
Total Assets		$809,700		$410,500		$ 399,200.00	97.25%
Liabilities and Stockholders Equity		2019		2018
Current Liabilities:
	Accounts Payable	$150,000		$40,000		$ 110,000.00	275.00%
	Unearned Revenue	$40,000		$50,000		$ (10,000.00)	-20.00%
	Salaries Payable	$40,000		$30,000		$ 10,000.00	33.33%
	Federal Income Taxes Payable	$10,000		$10,000		$ -	0.00%
	Total Current Liabilities	$240,000		$130,000		$ 110,000.00	84.62%
Long Term Liabilities
	Note Payable	$130,000		-		$ 130,000.00	0.00%
Total Long-Term Liabilities		$130,000		-		$ 130,000.00	0.00%
Total Liabilities		$370,000		$130,000		$ 240,000.00	184.60%
Stockholders Equity:
	Common Stock, $10 Par	$170,000		$100,000		$ 70,000.00	70.00%
	Paid-In Capital in Excess of Par	$43,700		$ -		$ 43,700.00
	Retained Earnings	$226,000		$180,500		$ 45,500.00	25.20%
	Total Stockholders Equity	$439,700		$280,500		$ 159,200.00	56.80%
Total Liabilities and Stockholders Equity		$809,700		$410,500		$ 399,200.00	97.20%

Robust Robots, Inc.
Comparative Statement of Income -Vertical analysis
For the Years Ended December 31, 2019 and 2018
							2019	%	2018	%
Sales							$700,000	100%	$600,000	100%
Cost of Goods Sold							$524,300	74.90%	$420,000	-70.00%
Gross Margin							$175,700	25.10%	$180,000	30%
Operating Expenses:
	Salaries and Wages Expense						$47,290	6.76%	$100,000	-16.67%
	Rent Expense						$20,256	2.89%	$20,000	-3.33%
	Depreciation Expense						$20,000	2.86%	$10,000	-1.67%
		Total Operating Expenses					$87,546	12.51%	$130,000	21.67%
Income from Operations							$88,154	12.59%	$50,000	8.33%
	Loss on Sale of Equipment						($5,213)	-0.74%	-
	Interest Expense						($3,656)	-0.52%	($5,000)	-0.83%
		Increase (Decrease) in Operating Income					($8,869)	-1.27%	($5,000)	-0.83%
Income before Taxes							$79,285	11.33%	$45,000	7.50%
Federal Income Taxes							$23,786	-3.40%	$13,500	-2.25%
Net Income							$55,500	7.93%	$31,500	5.25%

Working Capital both years	$149,700
Current Ratio both years	1.62
Quick ratio both years	1.06
Account Receivable Turnovers	5.60
Number of Days Sales in Receivables	65
Inventory Turnover	5.12
Number of Days Sales in Inventory	71
	2019	2018
Ratio of Liabilities to Stck Equidy	0.84	0.46
Return on Total Assets 2019	$0.08
Return on StockHolders Equidy	$0.15
	2019	2018
Earnings Per Share	$0.33

1. Determine the predetermined overhead rate.

2. Determine the total number of robots to account for.

Manufacturing Process Information Mr. Roberts, the CEO of Robust Robots, Inc. has begun a small manufacturing process that will manufacture simple functioning robots and then sell the robots to merchandising companies. The manufacturing process starts with plastic being formed into parts through injection molding. After the parts are cooled and inspected the parts are assembled. The first step is attaching the dome to the body, attach the legs, then insert the motor and fasten the wheels. Once completed the robots are the transferred to finished goods. This is a process cost system and the company elects to use the FIFO method of accounting for product costs. Direct material-plastic is added 100% at the beginning of the process for all parts. Direct material motors and wheels are added 100% as the last step in the manufacturing process. At the beginning of the accounting period, Mr. Roberts estimates that production will be 100.000 robots during the year. Estimated factory overhead is $50,000. This information is to be used to determine the application rate for the manufacturing overhead. Estimated and actual direct labor costs totaled $41,880. Actual factory overhead costs totaled $45,000 The following information is available concerning direct materials. Direct Materials-Plastic Pellets Beginning inventory O plastic pellets Purchase of plastic 100,000 pounds @ $10.63 a pound Each robot takes a pound of plastic pellets. Direct Material-Motors Beginning inventory Purchase of motors Each robot contains one motor. O motors 100,000 motors @ $15.00 each Direct Materials-Wheels Beginning inventory Purchase of wheels Each robot needs 2 wheels O wheels 200,000 wheels @ $5.00 each The Work-in-process account has the following information: Ending work in process inventory has 17,000 units that are 100% complete as to plastic parts, 25% complete as to conversion costs and 0% complete as to motors and wheels. The Finished Goods account has the following Information: The finished goods inventory at January 1, 2019 had a balance of 2.000 robots at a cost of $140,000 and on December 31, 2019 had an ending balance of 3,000 robots. The selling price of the robot is $70.00. Selling and Administrative Costs totaled $100,000 tax rate is 35%. 11 | Page Manufacturing Process Information Mr. Roberts, the CEO of Robust Robots, Inc. has begun a small manufacturing process that will manufacture simple functioning robots and then sell the robots to merchandising companies. The manufacturing process starts with plastic being formed into parts through injection molding. After the parts are cooled and inspected the parts are assembled. The first step is attaching the dome to the body, attach the legs, then insert the motor and fasten the wheels. Once completed the robots are the transferred to finished goods. This is a process cost system and the company elects to use the FIFO method of accounting for product costs. Direct material-plastic is added 100% at the beginning of the process for all parts. Direct material motors and wheels are added 100% as the last step in the manufacturing process. At the beginning of the accounting period, Mr. Roberts estimates that production will be 100.000 robots during the year. Estimated factory overhead is $50,000. This information is to be used to determine the application rate for the manufacturing overhead. Estimated and actual direct labor costs totaled $41,880. Actual factory overhead costs totaled $45,000 The following information is available concerning direct materials. Direct Materials-Plastic Pellets Beginning inventory O plastic pellets Purchase of plastic 100,000 pounds @ $10.63 a pound Each robot takes a pound of plastic pellets. Direct Material-Motors Beginning inventory Purchase of motors Each robot contains one motor. O motors 100,000 motors @ $15.00 each Direct Materials-Wheels Beginning inventory Purchase of wheels Each robot needs 2 wheels O wheels 200,000 wheels @ $5.00 each The Work-in-process account has the following information: Ending work in process inventory has 17,000 units that are 100% complete as to plastic parts, 25% complete as to conversion costs and 0% complete as to motors and wheels. The Finished Goods account has the following Information: The finished goods inventory at January 1, 2019 had a balance of 2.000 robots at a cost of $140,000 and on December 31, 2019 had an ending balance of 3,000 robots. The selling price of the robot is $70.00. Selling and Administrative Costs totaled $100,000 tax rate is 35%. 11 | Page

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