Expenses: Advertising Expense $14,000
Insurance expense 20,000
Salaries expense 49,000
Rent expense 10,000

Liabilities:
Salaries payable 12,000
Notes payable 36,000

Dividends:
Dividends 9,000

Assets:
Cash 26,000
Accounts receivable 24,000
Supplies 15,000
Land 55,000

Revenues:
Service revenue 94,000
Interest revenue 9,000

Equity :
Common stock 44,000
Retained earnings 27,000

Assume the company has an increase in its Salaries Expense of 20% and a decrease in Service Revenue of 15%. Both of which will be settled after the year end. Adjust and recalculate the balances in the Income Statement and Balance Sheet. All sales are on account.

Required:
a. What is the revised balance in Accounts Receivable?

1. $11.900
2. $9,900
3. $17,900
4. $4,900

b. What is the revised balance in Salaries Payable?

1. $5,500
2. $10,500
3. $21,800
4. $18,500

1. alwaysrain irrigation, inc. would like to determine capacity requirements for the next four years. currently, two production lines are in place for making bronze and plastic sprinklers. three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. management has forecast demand for the next four years as follows: both production lines can produce all the different types of nozzles. the bronze machines needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers. the plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,000 sprinklers. three bronze machines and only one injection molding machine are available. what are the capacity requirements for the next four years? (assume that there is no learning.)