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Ozark Corporation reported net income of $100,000 for 20X5. The income statement revealed sales of $1,000,000; gross profit of $520,000; selling and administrative costs of $340,000; interest expense of $20,000; and income taxes of $60,000.
The selling and administrative expenses included $25,000 for depreciation. No equipment was sold during the year. Equipment purchases were made with cash. Prepaid insurance included in the balance sheet related to administrative costs. All accounts payable included in the balance sheet relate to inventory purchases. The change in retained earnings is attributable to net income and dividends. The increase in common stock and additional paid-in capital is due to issuing additional shares for cash.
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From this ranking and your understanding, identify and discuss mandatory and desirable features of such a system. Based on this identification, propose three alternative design solutions-low, medium, and high-for the library management information..
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Prepare the necessary closing entries at the end of 2013, and post them to the appropriate T-accounts.
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