Consider the following scenario: You are visiting with a relative who has just started her own business that operates in both the United States and Mexico. Your relative is not familiar with financial statements and needs your advice for income statements and balance sheets. You want to help, so you do the following.

Instructions Step 1: Create an example of an income statement using GAAP standards. (Sample blank Income Statement)

Step 2: Create an example of a balance sheet using GAAP standards. (Sample blank Balance Sheet)

Step 3: Recreate your balance sheet from Step 2 using IFRS standards.

Step 4: Write a 1-page memo that explains the following: How to read and understand the income statement from Step 1. How to read and understand the balance sheet from Step 2. The differences between GAAP and IFRS standards and how it makes your balance sheet from Step 2 different than the balance sheet in Step 3. Combine the income statement, the two balance sheets, and the 1-page memo into a single Word document. Your 1-page memo should be single-spaced, 12-point font, and in Times New Roman.