1. Based on the financial statements prepared for Field of Dreams for the 2020 fiscal year, prepare a new Statement of Income, Statement of Changes in Equity, and Statement of Financial Position for the year ending December 31, 2021 HINT: Set-up the financial statements so that they show both 2020 and the new 2021 financial data (comparative financial statements).

Use the following conditions to support the creation of the projected financial statements:

1. 22% increase in revenue.
2. All accounts receivables from 2020 will be collected as cash in 2021; 15% of the 2021 revenue will be outstanding as a receivable at the end of the 2021 year.
3. 15% increase in salaries.
4. 1.3% increase in rental cost for fields.
5. 5% increase in administrative expenses.
6. New advertising expense of $3000.
7. Interest expense for 2021 will be $720, which will still be owed at the end of 2021.
8. Corporate tax rate will be at 20%; This amount will still be owing at the end of 2021.
9. CCA allowance for combined total non-current assets is 20%.
10. $1000 of the term loan will be paid off during the 2021 year.
11. Income tax payable from 2020 will be paid in cash during the 2021 year.
12. Jason Tyrells dividend payout for 2021 will increase by 5%.

Note: For the projected Statement of Income, Statement of Changes in Equity, and Statement of Financial Position, ensure that the 2021 financial statement cells include formulasdo not simply type in the numbers!

Field of Dreams Statement of Income for the period ending December 31, 2020 2020 Revenue 100,000 Cost of sales COGS Total cost of sales 0 Gross profit 100,000 Expenses Salaries expense Field rental expense Adminisrative expense Insurance expense Interest expense Depreciation/amortization Other charges Total expenses 20,000 14,000 7,000 6,000 800 0 0 47,800 Profit before taxes 52,200 Income taxe expense 10,4401 Profit for the year 41,760 Field of Dreams Statement of Changes in Equity For the period ending December 31, 2020 2020 Common shares Balance at beginning of year Common shares issued Other changes Balance at end of year 5,000 5,000 Retained earnings Balance at beginning of year Profit applicable to common shareholders Sub-total Dividends paid to shareholders Balance at end of year 41,760 41,760 35,000 6,760 Total shareholders' equity 11,760 Field of Dreams Statement of Financial Position As at December 31, 2020 2020 Assets Non-current assets Bus Equipment Sub-total Accumulated depreciation/amortization 12,000 1,500 13,500 0 13,500 9,500 10,000 19,500 33,000 Total non-current assets Current assets Cash Trade receivables Total current assets Total assets Equity and liabilities Share capital Retained earnings Total shareholders equity Non-current liabilities Bank Loan (10 year term loan) Total Non-current liabilities Current liabilities Interest payable Income Tax Payable Other accounts payable 5,000 6,760 11,760 10,000 10,000 800 10,440 0 Total current liabilities 11,240 Total labilities 21,240 Total equity and liabilities 33,000 Field of Dreams Statement of Income for the period ending December 31, 2020 2020 Revenue 100,000 Cost of sales COGS Total cost of sales 0 Gross profit 100,000 Expenses Salaries expense Field rental expense Adminisrative expense Insurance expense Interest expense Depreciation/amortization Other charges Total expenses 20,000 14,000 7,000 6,000 800 0 0 47,800 Profit before taxes 52,200 Income taxe expense 10,4401 Profit for the year 41,760 Field of Dreams Statement of Changes in Equity For the period ending December 31, 2020 2020 Common shares Balance at beginning of year Common shares issued Other changes Balance at end of year 5,000 5,000 Retained earnings Balance at beginning of year Profit applicable to common shareholders Sub-total Dividends paid to shareholders Balance at end of year 41,760 41,760 35,000 6,760 Total shareholders' equity 11,760 Field of Dreams Statement of Financial Position As at December 31, 2020 2020 Assets Non-current assets Bus Equipment Sub-total Accumulated depreciation/amortization 12,000 1,500 13,500 0 13,500 9,500 10,000 19,500 33,000 Total non-current assets Current assets Cash Trade receivables Total current assets Total assets Equity and liabilities Share capital Retained earnings Total shareholders equity Non-current liabilities Bank Loan (10 year term loan) Total Non-current liabilities Current liabilities Interest payable Income Tax Payable Other accounts payable 5,000 6,760 11,760 10,000 10,000 800 10,440 0 Total current liabilities 11,240 Total labilities 21,240 Total equity and liabilities 33,000