Question
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...Get Instant Access to Expert-Tailored Solutions
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