2006 SALES DEPARTMENT INFORMATION
The sales department consists of 10 representatives who report directly to the president . Each individual is on a base salary plus a commission , and the sales reps also submit meal and entertainment expenses for reimbursement . ( In 2005 , the meal and entertainment expenses were limited to $ 50 per week per sales representative based upon a 52 week year .)
The following information is available regarding the actual selling costs incurred for 2005 :
No change 2006 ADMINISTRATIVE BUDGET INFORMATION
The administrative department consists of the president and an office staff of eight who handle the secretarial , purchasing , and accounting duties . ( Total of nine people .) The following information is available regarding the 2005 actual costs :
It is felt that the level of the office and administrative staff will be adequate for the coming year . It is expected that the following changes will occur in 2006 :
2006 INCOME TAX INFORMATION
The current federal and state income tax rates total 40 %. All taxes for the year will be paid by the end of the year which means that there will be no accrued taxes on December 31 , 2006 .
2006 ACCOUNTS RECEIVABLE INFORMATION