Events	Balance Sheet
	Assets								Liab				Equity
	Cash	Acct Rec	Inventory	Equipment	Land	Building	-	Accum Depr	Acct Payable	Div Payable	Notes Payable	Wages Payable	Common Stock	APIC	Retained Earnings
Acquired $550,000 by signing a note payable with a local bank	$ 550,000										$ 550,000
Sold 25,000 shares of $22 Common Stock for $1,500,000	$ 1,500,000						-						$ 550,000	$ 950,000
Purchased Equipment	$ (200,000)			$ 200,000			-
Purchased Inventory on Account - 25,000 Units at $1.15 per unit			$ 28,750						$ 28,750
5a. Sold 15,000 units at $3.50 on Account		$ 52,500					-								$ 52,500
COGS for Sales on Account			$ (17,250)												$ (17,250)
Collect $70,000 on Account	$ 70,000	$ (70,000)					-
Paid $17,250 of Accounts Payable	$ (17,250)								$ (17,250)
Purchased Inventory on Account - 170,000 Units at $1.50 per unit			$ 255,000				-		$ 255,000
Sold 175,000 units at $3.50 on Account		$ 612,500					-								$ 612,500
COGS for Sales on Account			$ (201,250)				-								$ (201,250)
Collect $472,500 on Account	$ 472,500	$ (472,500)					-
Paid $118,600 of Accounts Payable	$ (118,600)						-		$ (118,600.00)
Purchased Inventory on Account - 275,000 Units at $1.45 per unit			$ 398,750				-		$ 398,750
Sold 200,000 units at $3.50 on Account		$ 700,000					-								$ 700,000
COGS for Sales on Account			$ (270,750)				-								$ (270,750)
Collect $735,000 on Account	$ 735,000	$ (735,000)					-
Paid $294,150 of Accounts Payable	$ (294,150)						-		$ (294,150.00)
Purchased Inventory on Account - 300,000 Units at $1.15 per unit			$ 345,000						$ 345,000.00
Paid Sales & Marketing Expenses of $30,000	$ (30,000)						-								$ (30,000)
Paid Operating Expenses of $75,708	$ (75,708)						-								$ (75,708)
Paid Wage Expenses of $40,000	$ (40,000)						-								$ (40,000)
Paid Product Line Research & Development Expenses of $150,000	$ (150,000)						-								$ (150,000)
Paid Advertising Expenses of $87,500	$ (87,500)						-								$ (87,500)
Made the yearly required payment on the note payable. The note carries a 7% interest rate and requires payments of $50,000 plus interest each December 31.	$ (88,500)										$ (50,000)				$ (38,500)
Record Yr 1 Depreciation on Equipment with Salvage Value of $38,000 & useful life of 7 Yrs							-	$ (23,143.00)							$ (23,143)
Declared a $10,000 cash dividend for stockholders										$ 10,000.00					$ (10,000)
Paid a $10,000 cash dividend for stockholders	$ (10,000)									$ (10,000.00)
Balance at end of Yr 1	$ 2,215,792	$ 87,500	$ 538,250	$ 200,000	$ -	$ -	-	$ (23,143)	$ 597,500	$ -	$ 500,000	$ -	$ 550,000	$ 950,000	$ 420,899

Flexible budget (using template provided) to include the following assumptions:Three sales volume levels (additional details below)Sales Revenue at a projected sales price of $3.50 per unit at each volume levelCost of Goods Sold (use FIFO method to record inventory purchases in the accounting equation and weighted average method to calculate break-even point) Operating Expenses Fixed Costs pulled from your accounting equation worksheet.Check Figure/Reflection - Does your calculated Net Income tie out to your accounting equation worksheet for your actual sales column? Why or why not?Calculate the required purchases for a desired ending inventory of $35,000, assuming your ending inventory from the accounting equation worksheet is your beginning inventory for budgeting purposes.A break-even calculation (show your work on the excel file) of how many units you need to sell in order to break-even.

A D E F G 1 H Goods Available for Sale Price/ Units Unit Total Cost of Goods Sold Price/ Units Unit Total Ending Inventory Price/ Units Unit Total 2 3 Beg Bal 4 Purchases: 5 6 7 8 9 10 11 12 13 Total 14 15 NOTE: You will need to calculate your estimated COGS for the budget template tab using the 16 Weighted Avergae method discussed in LOS-6 17 Flexible Budget Master Budget at Actual Units Sold in Year 1 Actual Units Sold+ 25,000 Actual Units Sold +50,000 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Sales & Marketing Operating costs Wages Research & Development Expense Advertising Expense Depreciation Exp Interest Expense Net Income Inventory Production use ending inventory from CORRECTED horizontal balance sheet for beginning inventory for the Beginning Inventory + Purchases - Estimated COGS Desired Ending *actual units at weighted average COGS/unit Purchases Note: Calculate next year's estimated purchases for desired ending inventory of 535,000, assuming your ending inventory from the horizontal balance sheet is your beginning inventory for the next year. For Estimated COGS, use the weighted average COGS and last year's actual units Breakeven Calcuation BEFC/ Contribution A D E F G 1 H Goods Available for Sale Price/ Units Unit Total Cost of Goods Sold Price/ Units Unit Total Ending Inventory Price/ Units Unit Total 2 3 Beg Bal 4 Purchases: 5 6 7 8 9 10 11 12 13 Total 14 15 NOTE: You will need to calculate your estimated COGS for the budget template tab using the 16 Weighted Avergae method discussed in LOS-6 17 Flexible Budget Master Budget at Actual Units Sold in Year 1 Actual Units Sold+ 25,000 Actual Units Sold +50,000 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Sales & Marketing Operating costs Wages Research & Development Expense Advertising Expense Depreciation Exp Interest Expense Net Income Inventory Production use ending inventory from CORRECTED horizontal balance sheet for beginning inventory for the Beginning Inventory + Purchases - Estimated COGS Desired Ending *actual units at weighted average COGS/unit Purchases Note: Calculate next year's estimated purchases for desired ending inventory of 535,000, assuming your ending inventory from the horizontal balance sheet is your beginning inventory for the next year. For Estimated COGS, use the weighted average COGS and last year's actual units Breakeven Calcuation BEFC/ Contribution