ABC Company
Income StatementUse an Excel template to create an income statement, balance sheet, and simple statement of cash flows for ABC Company. Demonstrate use of basic Excel skills, understanding of correct format for financial statements, and ability to create a simple statement of cash flows using the indirect method.			Increase
(000 omitted)			(Decrease)
Year ending December 31	YR2	YR1	Amount	% Change
Net sales	1150	932
Cost of goods sold	750	578
Operating expenses (salaries, rent, utilities)	305	265
Depreciation	10	8
Interest expense	5	5
Income tax expense	18	18
Total expenses
Net income
ABC Company
Balance Sheet			Increase
(000 omitted)			(Decrease)
December 31,	YR2	YR1	Amount	% Change
Cash	124	22
Accounts receivable	29	19
Inventory	46	48
Total current assets
Investments	71	55
Gross property, plant, and equipment	125	95
Accumulated depreciation	-25	-15
Total long-term assets
Total assets
LIABILITIES AND NET ASSETS
Accounts payable	30	36
Interest payable	5	8
Total current liabilities
Notes payable	50	17
Total long-term liabilities
Common stock	125	65
Retained earnings	160	98
Total stockholders' equity
Total liabilities and stockholders' equity
ABC Company
Statement of Cash Flows
(000 omitted)
Year ending December 31,
CASH FLOWS FROM OPERATIONS	YR2
Net income
Plus depreciation and amortization
Change in accounts receivable
Change in inventory
Change in accounts payable
Change in interest payable
Net cash flow from operations
CASH FLOWS FROM INVESTING ACTIVITIES
Change in investments
Buy property, plant, and equipment
Net cash flow from investing
CASH FLOWS FROM FINANCING ACTIVITIES
Change in notes payable
Issue common stock
Net cash flow from financing
Net increase (decrease) in cash
Beginning cash
Ending cash
ABC Company Ratios	YR2	YR1	Benchmark
PROFITABILITY
Gross profit
Profit margin
Return on equity
Return on assets
LIQUIDITY
Current ratio
DEBT (Capital Structure)
Debt to equity
Equity multiplier
ACTIVITY RATIOS
Total asset turnover
DUPONT ANALYSIS
Profit margin
Times total asset turnover
Equals return on assets
Times equity multiplier
Equals return on equity