Get Creative!No student should have the same Idea so Think of Something Unique that Interests You Dream up a company that you would like to be the owner of.Anything goes.It can be a huge company or a very small business.It can be a manufacturer, distributor, retail operation or anything at all. It must carry at least some inventory even if it is a service business.You personally must own some or all of the Common Shares of the business. I really want you to be creative.I should not see any 2 students with a similar business. On Background Information Worksheet: Name your company.It must be incorporated (eg.Limited,Incorporated etc) Your company must be in it's 2nd year of operations or later (cannot be in first year of operations) Describe in at least 5 sentences, your business objective and key operations (what you do for example:manufacture x?, retail store for x products?,provide x services? etc) Describe who owns the business (who owns the common shares for example:only you or many others as well) (are there any preferred shareholder's?) Describe who the main long term creditors are and what the money that was borrowed was used for?(did you buy a Building?Did you buy inventory?Did you invest in research related to your products?) Select your year end date.It must be some date ending in 2020. Trial Balance: Use excel FORMULA to transfer the NAME OF YOUR COMPANY and YEAR END DATE to the top of the Trial Balance Worksheet in the space indicated. Make up your year end account balances. Formatting:Use only whole dollars and format to use a comma every 3 digits.For example:(2,456,921) Your balances must result in Ratio results that fall within the Range Stipulated on the RATIO worksheet.You may need to go back and change some balances once you've finished all the other Financial Statements as it will be hard to test these RATIOS until you've got the Financial Statements finished.Take a look at the RATIO worksheet. Enter the accounts on the Trial Balance page.Get creative.You can get ideas of account names from looking at examples in your textbook or looking up real companies on the internet. Marks will be awarded for being creative and thorough (eg. It would not be realistic for a company to not have a Bad Debt Expense, Salaries & Wages Expense, Depreciation Expense accounts).Try to be realistic and think of the types of expenses, revenues, gains and losses your company would truly have. Please list the accounts in the Order that I have shown on this page.DO NOT CHANGE the number of accounts expected for each category. There are some accounts that you MUST HAVE.I have already put their name on the Trial Balance so please USE THESE ACCOUNTS and don't move them. DO NOT DELETE ANY LINES OR MOVE THE ORDER OF ACCOUNTS Make sure you total the Debit & Credit columns using an excel FORMULA Whenever you sum a columns of figures always use the Excel feature to UNDERLINE THE COLUMN THAT HAS BEEN SUMMED Whenever you have completed a section you should DOUBLE UNDERLINE the final figure (eg.Total Debit,Total Assets) Make up your own tax rate for computing the Income Tax Expense balances. Statement of Comprehensive Income also known as the Income Statement The format taught in class must be used. Your Account Names and Balances MUST BE COMING FROM THE Trial Balance Page using Excel Forumula (eg. "=C43" would bring the"Cost of Goods Sold" Account Name over and "=B43" would bring the Cost of Goods Sold balance over to the Statement).I will demonstrate in our Monday class. You must have subtotals and totals as appropriate if you are summing figures together.UNDERLINE all subtotal columns and DOUBLE UNDERLINE all Final Column Figures (eg. TOTAL ASSETS and TOTAL LIABILITIES AND SHAREHOLDER"S EQUITY) You can use multiple columns if that makes your Statement easier to read. FORMULAS MUST BE USED FOR ALL SUMS and to link all Accounts and Balances from the TRIAL BALANCE.DO NOT KEY IN ANY VALUES directly into a Financial Statement Worksheet. Statement of Shareholder's Equity All the same instructions as above for the Statement of Comprehensive Income You must make the following assumptions about transactions that took place during the 2020 fiscal year: Dividends were declared to the Common Shareholders but only 80% of the declared dividends were paid in 2020 (you make the assumption about how much the value was that was declared for 2020) Common Shares were issued to you for Cash this year (you make your own assumption about how much the value was that was issued in 2020) There must have been an Opening Balance (Credit Balance) in Accumulated Other Comprehensive Income at the Beginning of the Year (you can assume how much), Statement of Financial Position (SFP) also known as Balance Sheet Your Account Names and Balances MUST BE COMING FROM THE Trial Balance Page using Excel Forumula (eg. "=C3" would bring the Accounts Receivable Name over and "=C4" would bring the A/R balance over) You must use Headings in your Classified Statement of Financial Position (Balance Sheet) for:Current Assets, all different Long Term Assets, Current Liabilities, Shareholder's Equity.Please Underline and BOLD all headings. You must have subtotals and totals as appropriate if you are summing figures together.UNDERLINE all subtotal columns and DOUBLE UNDERLINE all Final Column Figures (eg. TOTAL ASSETS and TOTAL LIABILITIES AND SHAREHOLDER"S EQUITY) You can combine some accounts together on a single line of your SFP if the accounts are immaterial and/or similar in nature.(eg. If you have Prepaid Insurance and Prepaid Rent you can combine these values into an account called Prepaid Expenses.) Use the Format required for your tests and shown in the example referred to in your textbook to format this Statement. FORMULAE MUST BE USED FOR ALL SUMS and to link all Accounts and Balances from the TRIAL BALANCE.DO NOT KEY IN ANY VALUES. Statement of Cash Flows This will be a tough one! After your instructor has marked your Balance Sheet and you have corrected any errors, please Copy your Balance Sheet to the other Blank Worksheet called Comparative Balance Sheet. Enter figures for 2019 year end to the RIGHT of the 2020 figures.Just make them up.Anything is fine.However be careful with the Shareholder's Equity accounts because they will have to be the same values you used as the Opening Balances on your Statement of Changes in Shareholder's Equity. Now you can use this Comparative Balance Sheet and the Statement of Comprehenisve Income and Statement of Shareholder's Equity to Prepare your Statement of Cash Flow. Check to make sure your Closing Balances match to the Closing Balances on your Final Trial Balance for all the Shareholder's Equity Accounts.