' 2 3 Projected Financial Statements for J ulie's Jewelry Business 4 For the 3 months ended March 31 2022 5 6 T 8 9 10 11 12 13 14 15 1B 1? 18 19 20 21 22 23 24 25 2B 2? 28 29 30 31 32 33 34 35 36 3? 38 39 40 41 42 43 44 45 4s 4? 48 4e 50 51 52 53 54 55 56 5? 58 59 60 61 B2 63 64 Business Activity: I $2,250 will be contributed by the ownerin December. Julie expects to purchase $2000 equipment with a bank loan in January. Sun design necklace sales price Moon design necklace sales price Cost of Sun design necklace Cost of Moon design necklace Annual Growth Rate Advertising as a percent of total sales General expense Units Sun necklace sold Units Moon necklace sold P&L Statement Sun Necklace Sales Moon Necklace Sales Total Sales Cost of Sun Necklaces Sold Cost of Moon Necklaces Sold Total Cost of Goods Sold Gross profit Expenses Advertising General Expenses Depreciation Total Expenses Net Income Statement of Cash Flows Operating Activities Net Income Changes in Our. Assets and Liabiiities Change In Accounts Receivable 1 Change In Inventory on Hand 1 "I Change In Accounts Payable Non-cash SXiSnS SS Cash Flow from Operating Activities Investing Activities Change In Equipment "' Cash Flow from Investing Activities Financing Activities Change In Notes Payable 1 Change In Pald-ln-Caplial : Change In Less: Owner's Withdrawal Cash Flow from Financing Activities Net increasettdecrease} in cash Cashubeginning of month Cashuend of month iiii 150 175 75 50% 5% 1,500 Jan Assumptions Days Receivable from Total Sales Inventory {as of next month COGS} NP ['it: of Advertising plus General Expenses} Equipment Life in months Fe b Ma r Ap ri | 23 18 Feb Mar April Feb Mar 25% 15% Check: April N.I'| = $1.??3 Check: March Cashend of month = $5.036 )4 3.: is Balance Sheet Dec Jan Feb Mar 3? Assets 38 Cash |:| 39 Accounts Receivable - '0 Inventory on Hand '1 Equipment '2 Less Accumulated Depreciation '3 Total Assets 5 Check: March Assets = $9.0M '21 '5 Llabllltles '6 Accounts Payable 5 '3' Notes Payable - '8 Total Liabilities '9 30 Owner's Equity 31 Paid-in-Capital |:| 32 Less: Owner's Withdrawal 33 Retained Earnings 34 Total Owner's Equity $ 35 Total Liabilities and Owner's Equity 36 3? 38 After completing projected nancial statements, answer the following questions: round to whole numbers 38 Quiz Questions: 1. If the price for the Sun Necklace increases to $175, what is the prot Net Income or (Loss) in 39 February? 2. What is the cash balance at the end of February? 00 01 NOTE: Change the price back to $150. 3. How much Cash was generated by Financing Activities in January? 02 4. What caused the increase in Retained Earnings for March? 03 5. What was the Quick Ratio for March? 0'1 6. What was the average Inventory Turnover for the three months? 05 7. What is Break-Even analysis: 06 1. You may refer to past assignments and videos to complete Project 5 but you must work on your own, without help from the teacher or other students. 2. Based on the assumptions Included in the Project 05 Julie's Jewelry spreadsheet i, , build the nancial statements always using formulas. Formulas include placing an equal sign (=) in front of a given amount such as loan amounts, or rent expense. (Read the assumptions carefully. Some of the Balance Sheet assumptions use Days and some use %.) O O 0 First, build the P&L statement. Next, build the Balance Sheet. Then, build the Statement of Cash Flows. 3. Appropriate line items for each of the nancial statements are included in the spreadsheet. 4. Use the following guidelines to complete the spreadsheets: O O D O O 0 Use the Annual Growth Rate to calculate the units sold. Divide by 12 to get the monthly growth rate. Use units sold to calculate Sales, Cost of Sales, and Advertising. Enter the Equipment amounts on the Balance Sheet so you can calculate Depreciation on the P&L using the Equipment Life in Months assumption. Use the assumptions to calculate the Balance Sheet accounts: - Accounts Receivable - uses Days Receivable and Total Sales - Inventory Uses Inventory and a percent of next month's COGS - Accounts Payable - Uses a percent times (Advertising plus General Expenses) Use Net Income on the P&L to calculate Retained Earnings on the Balance Sheet. Refer to the comments on the spreadsheet for hints to calculate the change in assets for the Statement of Cash Flows. Use Cash-End of month on the Statement of Cash Flows to calculate the Cash balance on the Balance Sheet. Check that Assets = Liabilities and Owner's Equity on the Balance Sheet. If it doesn't balance, recheck your work. 5. You can use formulas to answer the question below the Balance Sheet or type your answers into your spreadsheet. (Check to make sure you changed the price back to $150 after question two.) 6. Post your answers to the W13 ProjLSQLQuestions. 7. Save your spreadsheet and submit your le