Computer Consulting Limited Was Started in Early 2019 and Continued

question 130

Essay

Computer Consulting Limited was started in early 2019 and continued to operate until early 2022, when it was wound up due to disputes between the two principal shareholders. When it started, the company used these accounting policies:
1. Use straight-line depreciation for the firm's only asset, a computer which cost $1,100,000 and has an estimated useful life of four years.
2. Estimate warranty expense as 9% of sales.
3. Estimate bad debts expense as 5% of sales.
Derive the annual net cash flows for 2019 to 2021. For the year-end balance for 2022, assume accounts receivable, allowance for doubtful accounts, and the warranty accrual are $0, as the firm wound itself up during the year and all timing differences have been resolved.
$$\begin{array} { | l | r | r | r | r | } \hline & 2019 & 2020 & 2021 & 2022 \\\hline \text { Sales (all on account } & 3,400,000 & 3,600,000 & 4,100,000 & 410,000 \\\hline \begin{array} { l } \text { Warranties paid } \\\text { Proceeds on disposal of } \\\text { computer }\end{array} & 272,000 & 288,000 & 420,250 & 147,600 \\\hline \begin{array} { l } \text { Accounts receivable collected in } \\\text { the year }\end{array} & 2,958,000 & 2,880,000 & 3,895,000 & 1,126,000 \\\hline \begin{array} { l } \text { Accounts receivable written off } \\\text { in the year }\end{array} & 102,000 & 108,000 & 205,000 & 236,000 \\\hline \begin{array} { l } \text { All other expenses (paid in cash } \\\text { in the year incurred) }\end{array} & 2,380,000 & 2,520,000 & 2,767,500 & 287,000 \\\hline\end{array}$$

Understand the legal implications of job performance criteria.

Comprehend the objectives and uses of job classification systems.

Understand the benefits of organizational restructuring and less bureaucracy.

Recognize various methods used for job analysis and their applications.

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Definitions:

Positive Emotions

Feelings that are generally good or beneficial, such as happiness, joy, and contentment, which can enhance well-being and relationships.

Happiness

A state of well-being and contentment, characterized by positive emotions ranging from contentment to intense joy.

Pride

A feeling of satisfaction and self-respect that comes from achieving something important or being confident in one's own identity.

Love

A profound and complex set of emotions and attitudes towards others characterized by affection, care, and intimacy.