Financial Statement Project: Montana Furniture Design

Use the attached financial statements to answer the following questions. Please be sure to read and adhere to the additional guidance listed on the following page. 2. Since this business makes and sells furniture, access to materials is paramount. As You might already know, the price of lumber has changed significantly over the last couple of years. What would you expect to see on the financials as a reflection of the price changes in lumber? Does this business' financial data line up with the changes you were expecting? (This question will require you to research lumber costs data on the internet - you do not need to site your source) Montana Furniture Design Profit and Loss January 2018 - December 2020 JAN - DEC 2018 $2,276,200.04 JAN - DEC 2019 $2,018,919.33 JAN - DEC 2020 $2,544,841.58 Income Cost of Goods Sold Cost of Goods Sold Labor & wages Materials Other costs Shipping Wholesale items Total Cost of Goods Sold GROSS PROFIT 635,388.50 358,432.78 17,572.46 120,887.26 389,990.57 $1,402,271,64 $873,928.40 487,629.68 380,220.98 24,162.06 116,725.88 305,975,62 $1,314,708.22 $704,211.11 537,451.37 512,163.80 17,390.32 137,198.74 364,227 35 $1,568,431.58 $976,410.00 Expenses Charitable contributions Fees & subscriptions Marketing Moals and Entertainment Office expenses & utilities Payroll expenses administration Property taxes Reference materials Repair & Maintenance Salaries & wages Supplies & small tools Telephone & infomet 27,181.75 13,944.88 14,803.36 1,301.94 8,186.70 5,401.70 2.353 90 40,620.26 12,856.21 28,961,30 700.62 22,029.10 42,286.00 16,440.78 30,472.83 1.926.62 19,368.75 1,027.64 2,479,04 49.95 17,400.04 250,031.63 5,719.65 5,902.69 9,733.46 225,835.42 5,568.83 5,077.83 2.408.13 17:25 19,141.00 228,873.71 4,634.71 3,782 59 GROSS PROFIT $873,928.40 $704 211.11 1978,410.00 27,181.75 13,944.88 14,803.36 1,301.94 8,188.70 6,491.70 2,353 90 40,620-25 12,856.21 28,961.30 700.52 22,029.10 Expenses Charitable contributions Fees & subscriptions Marketing Meals and Entertainment Office expenses & utilities Payroll expenses administration Property taxes Reference materials Repair & Maintenance Salaries & wages Supplies & small tools Telephone & internet Travel Total Expenses NET OPERATING INCOME Other Income Other Expenses NET OTHER INCOME NET INCOME 8,733.46 225,835.42 5,568.83 5,077.83 8,657.06 $328,236.83 $545,691.57 $56.08 $0.00 $56.08 $545,747.65 2.408.13 1725 19,141.09 228,873.71 4,634.71 3.782.59 11,214.06 $374,938.92 $329,272.19 $52.15 $0.00 $52.15 $329,324.34 42.285.00 18,440.78 30,472.83 1,926.62 19,368.75 1,027.64 2,479.04 49.95 17,400.04 250,031.63 5.719.65 5.902.69 12,855.67 $405,960.39 $570,449.81 $171.00 $58.48 $112.52 $570,562.13 Montana Furniture Design Balance Sheet 2018 through 2020 JAN DEC 2018 JAN - DEC 2019 JAN - DEC 2020 29,210.44 5.00 6,066.58 $35,282.02 75,266.59 5.27 0.00 $75,271.86 60,118.13 72,271.10 0.00 $132,389.23 212,066.58 $12,066.58 ASSETS Current Assets Bank Accounts Checking Savings Petty Cash Total Bank Accounts Accounts Receivable Accounts Receivable Total Accounts Recevable Other Current Assets Total Current Assets Fixed Assets Accumulated depreciation Equipment Improvements Roof Building addition Total Fixed Assets 39.695.00 $39,695.00 $17,681.69 $92,658.71 37,890 29 $37,890.29 $0.00 $113,162.15 $24.476.40 $368,832.21 -227 052.00 256 308.00 239,224.00 262,447.00 5,300.40 30.870.00 27.450.13 $86,843.53 30,870,00 27.450.13 $87,576.13 $612,601.00 $792,835.84 243,369.00 262,447.00 5.300.40 30.870.00 27.450.13 $82,698.69 $294,153.00 $745,783.74 $588,791.00 $788,796.68 Inventory TOTAL ASSETS LIABILITIES AND EQUITY Liabilities Current Liabilities 256,308.00 30,870.00 27.450.13 $87,578.13 $612,601.00 $792,835.84 262,447,00 5,300.40 30,870.00 27,450.13 $86,843.59 $588,791.00 $788,796.68 262,447.00 5,300.40 30,870.00 27.450.13 $82,698.53 $294,153.00 $745,783.74 Equipment Improvements Roof Building addition Total Fbxed Assets Inventory TOTAL ASSETS LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts Payable Accounts Payable Total Accounts Payable Credit Cards Line of Credit Total Current Llabilities Long-Term Liabilities Total Uabilities Equity TOTAL LIABILITIES AND EQUITY 0.00 $0.00 $ 6,021.46 $60,000.00 $53,978.54 $0.00 $53,978.54 $738,867.30 $792,835.84 35.772.72 $35,772.72 $7,819.82 $0.00 $43,592.54 $0.00 $43,592.54 0.00 $0.00 $27.723.07 $0.00 $27.723.07 $112,170.40 $139,893.47 $605,890.27 $745.783.74 $745,204.14 $788,796.68 Use the attached financial statements to answer the following questions. Please be sure to read and adhere to the additional guidance listed on the following page. 2. Since this business makes and sells furniture, access to materials is paramount. As You might already know, the price of lumber has changed significantly over the last couple of years. What would you expect to see on the financials as a reflection of the price changes in lumber? Does this business' financial data line up with the changes you were expecting? (This question will require you to research lumber costs data on the internet - you do not need to site your source) Montana Furniture Design Profit and Loss January 2018 - December 2020 JAN - DEC 2018 $2,276,200.04 JAN - DEC 2019 $2,018,919.33 JAN - DEC 2020 $2,544,841.58 Income Cost of Goods Sold Cost of Goods Sold Labor & wages Materials Other costs Shipping Wholesale items Total Cost of Goods Sold GROSS PROFIT 635,388.50 358,432.78 17,572.46 120,887.26 389,990.57 $1,402,271,64 $873,928.40 487,629.68 380,220.98 24,162.06 116,725.88 305,975,62 $1,314,708.22 $704,211.11 537,451.37 512,163.80 17,390.32 137,198.74 364,227 35 $1,568,431.58 $976,410.00 Expenses Charitable contributions Fees & subscriptions Marketing Moals and Entertainment Office expenses & utilities Payroll expenses administration Property taxes Reference materials Repair & Maintenance Salaries & wages Supplies & small tools Telephone & infomet 27,181.75 13,944.88 14,803.36 1,301.94 8,186.70 5,401.70 2.353 90 40,620.26 12,856.21 28,961,30 700.62 22,029.10 42,286.00 16,440.78 30,472.83 1.926.62 19,368.75 1,027.64 2,479,04 49.95 17,400.04 250,031.63 5,719.65 5,902.69 9,733.46 225,835.42 5,568.83 5,077.83 2.408.13 17:25 19,141.00 228,873.71 4,634.71 3,782 59 GROSS PROFIT $873,928.40 $704 211.11 1978,410.00 27,181.75 13,944.88 14,803.36 1,301.94 8,188.70 6,491.70 2,353 90 40,620-25 12,856.21 28,961.30 700.52 22,029.10 Expenses Charitable contributions Fees & subscriptions Marketing Meals and Entertainment Office expenses & utilities Payroll expenses administration Property taxes Reference materials Repair & Maintenance Salaries & wages Supplies & small tools Telephone & internet Travel Total Expenses NET OPERATING INCOME Other Income Other Expenses NET OTHER INCOME NET INCOME 8,733.46 225,835.42 5,568.83 5,077.83 8,657.06 $328,236.83 $545,691.57 $56.08 $0.00 $56.08 $545,747.65 2.408.13 1725 19,141.09 228,873.71 4,634.71 3.782.59 11,214.06 $374,938.92 $329,272.19 $52.15 $0.00 $52.15 $329,324.34 42.285.00 18,440.78 30,472.83 1,926.62 19,368.75 1,027.64 2,479.04 49.95 17,400.04 250,031.63 5.719.65 5.902.69 12,855.67 $405,960.39 $570,449.81 $171.00 $58.48 $112.52 $570,562.13 Montana Furniture Design Balance Sheet 2018 through 2020 JAN DEC 2018 JAN - DEC 2019 JAN - DEC 2020 29,210.44 5.00 6,066.58 $35,282.02 75,266.59 5.27 0.00 $75,271.86 60,118.13 72,271.10 0.00 $132,389.23 212,066.58 $12,066.58 ASSETS Current Assets Bank Accounts Checking Savings Petty Cash Total Bank Accounts Accounts Receivable Accounts Receivable Total Accounts Recevable Other Current Assets Total Current Assets Fixed Assets Accumulated depreciation Equipment Improvements Roof Building addition Total Fixed Assets 39.695.00 $39,695.00 $17,681.69 $92,658.71 37,890 29 $37,890.29 $0.00 $113,162.15 $24.476.40 $368,832.21 -227 052.00 256 308.00 239,224.00 262,447.00 5,300.40 30.870.00 27.450.13 $86,843.53 30,870,00 27.450.13 $87,576.13 $612,601.00 $792,835.84 243,369.00 262,447.00 5.300.40 30.870.00 27.450.13 $82,698.69 $294,153.00 $745,783.74 $588,791.00 $788,796.68 Inventory TOTAL ASSETS LIABILITIES AND EQUITY Liabilities Current Liabilities 256,308.00 30,870.00 27.450.13 $87,578.13 $612,601.00 $792,835.84 262,447,00 5,300.40 30,870.00 27,450.13 $86,843.59 $588,791.00 $788,796.68 262,447.00 5,300.40 30,870.00 27.450.13 $82,698.53 $294,153.00 $745,783.74 Equipment Improvements Roof Building addition Total Fbxed Assets Inventory TOTAL ASSETS LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts Payable Accounts Payable Total Accounts Payable Credit Cards Line of Credit Total Current Llabilities Long-Term Liabilities Total Uabilities Equity TOTAL LIABILITIES AND EQUITY 0.00 $0.00 $ 6,021.46 $60,000.00 $53,978.54 $0.00 $53,978.54 $738,867.30 $792,835.84 35.772.72 $35,772.72 $7,819.82 $0.00 $43,592.54 $0.00 $43,592.54 0.00 $0.00 $27.723.07 $0.00 $27.723.07 $112,170.40 $139,893.47 $605,890.27 $745.783.74 $745,204.14 $788,796.68