Question
Complete the following pro forma comparative balance sheet and reconciliations of cash and equity for the Unique Gifts Shop using the percentage of sales method
Complete the following pro forma comparative balance sheet and reconciliations of cash and equity for the Unique Gifts Shop using the percentage of sales method and the following list of assumptions:
EXPECTED SALES 2020: $700,000
EXPECTED SALES 2021: $735,000
EXPECTED INCOME 2021: $115,200
A $10,000 PURCHASE OF COMPUTERS/SOFTWARE WITH A SALVAGE VALUE OF $0 WILL OCCUR IN 202. NO OTHER FIXED ASSETS ARE EXPECTED TO BE PURCHASED IN 2021. NO FIXED ASSETS ARE EXPECTED TO BE SOLD OR ABANDONED IN 2021. DEPRECIATION EXPENSE FOR 2021 IS EXPECTED TO BE $9,400. THE OWNERS EXPECT TO TAKE $100,000 DISTRIBUTIONS IN 2021.
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