ABC, Inc., is a company that started its business in 2015. During that year, the company raised capital by issuing 1,000 shares of common stock at par value of $50.

ABC,  Inc. wants to produce and sell metallic screws. In order to do that, in 2015 the company bought and installed a metalworking machinery for $4,000. The machinery has a useful life of 5 years, and is depreciated over its life using straight line depreciation.

For fiscal years 2015-2020 assume the following information:

In 2015, the company buys metallic rods (raw materials) for the future production of screws. Each year, the company buys 10% of rods on credit and pays completely during the next year.

The price for the rods is $0.20 per 1 foot and is constant throughout the life of the project. You can produce 10 screws from 1 foot of the metallic rod.

Here is the amount of rods the company bought during each of the years (in feet):