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El Cap Climbing Company (ECCC) is a small startup that manufactures and sells high-quality climbing gear in Fresno, California. The founder of the company, Leah,
El Cap Climbing Company (ECCC) is a small startup that manufactures and sells high-quality climbing gear in Fresno, California. The founder of the company, Leah, has been incredibly successful, but she hasnt kept the companys financial records as well as she might have. The initial investment for El Cap was provided by her friends and family and was small. However, current operations cant meet the demand for the product, and Leah has plans to increase both production and the number of storefronts. These plans require a large investment from both equity and debt financing. The new investors and creditors require detailed financial statements. Leah has hired you, a financial analyst, to prepare these statements and give insight into into the financial position of the firm. Leah has provided information from her bank statements, bills, and receipts in an Excel spreadsheet, which is found in your downloaded project files. She explained to you that taxes are paid at a rate of 30 percent, and dividends are paid at a rate of 40 percent. (Note: You can create the statements in the same Excel spreadsheet that has the financial information. Be sure to let the instructor know if you choose to do this instead of creating them in a Word document.) Prepare the following: An income statement for 2021 and 2022 A balance sheet for 2021 and 2022 Operating cash flows for the two years Cash flows from assets in 2022 Cash flows to creditors for 2022 Cash flows to stockholders for 2022
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