1. Create a new income statement and balance sheet that are linked to EACH OTHER. Please account for the following (please note that this is a general exercise and that there are some specific accounting nuances that may be difficult to resolve given this limited amount of dataplease see the instructor if you are having difficulty):

Revenue $100,000 (this should be an input field)

COGS 50% of revenue

Taxes 35% rate

Dividends 50% of Net Income

Interest Expense 12% of Long-Term Debt (Balance Sheet)

Depreciation 20% of Net Fixed Assets (Balance Sheet)

Number of shares 100,000 (input field)

EPS (calculate)

Current Assets

Cash $20,000 (input field)

A/R 20% of Sales (Income statement)

Inventory $20,000 (input field)

Total Current Assets (calculation)

Fixed Assets

Net Fixed Assets $75,000 (input field)

Total Assets (Calculation)

Liabilities and Owners Equity

Current Liabilities

Accounts Payable 40% of COGS (Income statement)

Notes Payable $10,000 (input field)

Total Current Liabilities (calculation)

Long Term Debt $20,000 (input field)

Owners Equity

Common Stock and Paid-In Surplus $50,000 (input field)

Retained Earnings (calculate)

Total Owners Equity (calculate)

Total Liabilities and Owners Equity (calculate)