Reid’s Rides sells high quality BMX bikes for $485 each. Thecost to produce the bikes average…

Reid’s Rides sells high quality BMX bikes for $485 each. Thecost to produce the bikes average…

Reid’s Rides sells high quality BMX bikes for $485 each. Thecost to produce the bikes average $335.00 each.Accumulated d epreciation is $6,000 and depreciation expenses run$2,000 per year. Utilities average $1100 per month, Insurance is$2,475 per year, vehicle gas averages $85 per month, phone andinternet is $255 per month and rent is $2,000 per month . Vehiclelicense and other fees are $795 per year. In addition Reid has abudget for tools at $75 per month. Last year Reid sold 597 bikes.Part tim e help is $7,800 per year. Reid has the following assets,miscellaneous parts $8 955 , ( List the miscellaneous parts as aseparate item from the inventory of bikes) tools $4,600delivery/service truck $22,000, office equipment, display racks,computers, phones equal $17,000 with an inventory of 80 bikes. Thecompany has a five – year loan. The loan amount at the start ofyear was $55,000 with an Interest rate of 6.5%. Operating Cash is$10,000, Cash in savings of 30,000 for a total of $40,000 . Reidaverages $4,500 in accounts receivable and $2,0 00 in accountspayable . Reid ’ s tax rate is 24%.  

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