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Create an income statement and a balance sheet for years X1 through X5. You may use any accounting principles that seem appropriate, providing that they

Create an income statement and a balance sheet for years X1 through X5. You may use any accounting principles that seem appropriate, providing that they are GAAP/IFRS. Your goal is to maximize the firm’s common stock price at the end of year 5, by making well-informed accounting and financial decisions. You should think of yourself as the CFO (chief financial officer) of this firm.

Balance Sheet for the year ending 12/31/X0

Assets

Cash

100,000

Marketable Securities

1,262,000

Accounts Receivable

192,000

Inventory

420,000

Other Assets

150,000

Current Assets

2,124,000

Equipment

2,000,000

Accumulated Depreciation

(200,000)

Fixed Assets

1,800,000

Total Assets

3,924,000

Liabilities and Equity

Accounts Payable

154,000

Other Current Liabilities

50,000

Current Liabilities

204,000

Mortgages

0

Total Liabilities

204,000

Common Stock

100,000

Paid in Capital

3,400,000

Retained Earnings

220,000

Total Equity

3,720,000

Total Liabilities and Equity

3,924,000

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Income Statement for the years ending 1231X1 through X5 Revenues X1 1500000 X2 2800000 X3 4200000 X4 6000000 X5 8000000 Total Revenues 22500000 Expenses Cost of Goods Sold X1 1200000 X2 2160000 X3 312... blur-text-image

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