:3 instructions F320 Comprehensive Assignment Fin Stmt Sr Budget Design Layout References Mailings Review View Y . : A 'i E, v - Century Gilli\"c ' i0 ': Z i '1 Mahatma AaBbCdeBe AaBchDt AdB'JCCD AaBchDclEe Aa Bb' AthC(DdE( mnccudse . Lo \"8518 W B I Q ' ahe X; )(2 A ' Al) ' A V 1: E :2 E :E ' V _ _ ' Normal Nu Spanlllg Heating 1 Headlng 2 Handling 3 rule Subtitle Subtle Empti, Styles _ Pan: 0 Ofllee Update To keep uptomte with security updates. xes, and Improvements. moose Check for Updates. i Check for Updates I 1. Review the completed horizontal balance sheet and correct the entries that contain errors. I Background You are a member of the company's executive team. As a team. you'll need to designate a role for each team member based on your declared major and relevant work and course expen'ence. For example. an accounting major may be designated as the CFO. while a marketing major may be designated as the VP of marketing for the firm. Click hei for a great article about who makes up an executive team. Remember , you have some flexibility here depending on your team's makeup. I This document was provided by your accounting team tor your review. As part of the executive team of this company. you will correct any errors and use the corrected version to construct a full set of financial statements. which will help guide your decision-making process. 2. Your team will use the CORRECTED horizontal balance sheet and templates provided to complete the following nancial statements: - Income Statement I Vertical Balance Sheet - Cash Flow Statement I Statement on Stockholder's Equity 3. Use the complete set of nancial statements as a basis for your management team's Advisory Board Meeting 4. Flexible budget (using template provided) to Include the following assumptions: I Three sales volume levels I Soles Revenue at a projected sales pn'ce at $3.50 per unit at each volume level I Cost at Goods Sold using weighted average method for the budget [Use inventory tracking sheet in template to calculate COGS using FIFO for the nancial statements. Weighted average method is for the budget ONLY) I Operating Expenses , Fixed Costs pulled from your Horizontal Balance Sheet - Calculate purchases tor desired ending inventory of $35,000. assuming your ending inventory from the horizontal balance sheet is your beginning inventory for budgeting purposes. - A breakeven calculation [show your work on the excel file] of how many bars you need to sell in order to break even. Page 2 of 4 1423 words III English (United States: n 5'1 _ U + 159% W Instructions Fa20 - Comprehensive Assignment Fin Stmt & Budget Q . Search in Document Home Insert Design Layout References Mailings Review View '+ Share Century Gothic . 10 A - A A A AaBbCcDdEe AaBbCcDdEe AaBbCcDc AaBbCCD AaBbCcDdEe AaBb( AaBbCCDdEe AaBb CcDdEe asto I U abe X2 X ALA = = = =. Normal No Spacing Heading 1 Heading 2 Heading 3 Title Subtitle Subtle Emph Styles Pane * Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. Check for Updates Survey of Accounting Comprehensive Assignment - Financial Statements & Flexible Budget Year 1 Transaction List: 1. Acquired $550,000 by signing a note payable with a local bank on Jan 1. 2. Sold 25,000 shares of $22 par value Common Stock for $1,500,000 3. Purchased Equipment for $300,000 cash 4. Purchased 25,000 Units of Inventory on Account at $1.15 per unit 5. Sold 15,000 units at $3.50 on Account 6. Collected $70,000 of accounts receivable 7. Paid $17,250 of Accounts Payable 8. Purchased 170,000 Units of Inventory on Account at $1.50 per unit 9. Sold 175,000 units at $3.50 on Account 10. Collected $472,500 of accounts receivable 11. Paid $118,600 of Accounts Payable 12. Purchased 275,000 Units of Inventory on Account at $1.35 per unit 13. Sold 200,000 units at $3.50 on Account 14. Collected $735,000 of accounts receivable 15. Paid $294,150 of Accounts Payable 16. Purchased 300,000 Units of Inventory on Account at $1.15 per unit 17. Record Sales & Marketing Expenses of $30,000 (paid in cash) 18. Record Operating Expenses of $75,708 (paid in cash) 19. Record Wage Expenses of $40,000 (paid in cash) 20. Record Product Line Research & Development Expenses of $150,000 (paid in cash) 21. Record Advertising Expenses of $87,500 (paid in cash) 22. Made the yearly required payment on the note payable. The note carries a 7% interest rate and requires payments of $50,000 plus interest each December 31. 23. Record Year 1 Depreciation on Equipment with Salvage Value of $38,000 and useful life of 7 Years (straight-line depreciation) 24. Declared a $10,000 cash dividend for stockholders 25. Paid a $10,000 cash dividend for stockholders Page 4 of 4 1423 words English (United States) E + 159%Events Cash Assets Balance She I Acquired $590.000 by signing a note payable with a local bank Meet Rec 500.000 Inventory Equipment Land Building Accum Dep Acct Payable Limb Div Payable Notes Payable Wages Payable Equity 2. Sold 25.000 shares of 522 Common Stock for $1,500.000 1.500,000 500.000 Common Stock APIC Retained Earnings 3. Purchased Equipment Account Titles for Retained Earnings 4. Parchased Inventory on Account . 25,000 Units at $1.15 per wmi (300.000) 300,000 550,000 950,000 . Sold 15.000 wars at 51 50 on Account L DOGS for Sales on Account 52 500 28.750 28.750 lect $70.000 on Acco 70.000 (17.250) 52.500 mis Payable (70.000) (07.250) Sales Revenue count . 170.000 Units at $1.50 per uni (17.250) 17 2501 Lost of Goods Sold $1.50 on Account 178.500 612 500 178 500 . Collect $472 500 on Account 612 500 zumis Payable 472 500 5 (472 500) Sales Revenue 1. 275.000 Limits at 51 15 per wit (!18.600) (118.500.00) Costs of Goods Sold is at $1 50 on Accom 371.250 136. COG's for Sales on Account 700,000 371.250 15. Paid $294.150 of Accounts Payable 735000 700.000 Sales Revenue (294,150) (735.0001 (270.750) (270.750) To. Purchased Inventory on Account - 1001000 Units at $1.15 per wit Costs of Goods Sold 17. Record Sales & Marketing Expenses of $10.000 345.000 (294.150.00) 18. Record Operating expenses of $75.708 ( 30.000) 345,000.00 19. Record Wage Expenses of $40 000 (75,708 20. Record Product Lie Research & Development Expenses of $150.000 (30.020] Marketing Expense (150.000) 40.000 (75.708) (40.000) Operating Expense (87.500) [150.000] Wage Expense 22. Made the yearly required payment on the note payable. The note carries a 7%% interest rate and (87 500) Research & Development Expense requires payments of $50,000 plus interest each December 31. (88 500] Advertising Expense (50,000) 23. Record Y's I Depreciation on Equipment with Salvage Value of $18,000 & useful life of 7 Yrs (38,500) Interest Expense 24. Declared a $10.000 cash dividend for stockholders 37,428 57 25. Paid a $10.000 cash dividend for stockholder (10.000) 10,000100 (37,429 Depreciation Expense Balance at end of Yr ] 5 2,105,792 3 87.500 5 450.750 5 100.000 5 37.429 5 (10 000 491 500 5 10.000.00] Dividend 450.000 5 40.000 5 550,000 5 950.000 Totall Aucts 421 113 Total Liallities & Forty 2 906,613 2 906,613