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i need a balance sheet and income statement Client: Akbar and Sarah Khan Akbar and Sarah are both 39 years old and are professional accountants.
i need a balance sheet and income statement
Client: Akbar and Sarah Khan Akbar and Sarah are both 39 years old and are professional accountants. They opened their own accounting office just over a year ago. They understand that it is risky to quit their jobs and go on their own but they feel this is the most appropriate time for them. They have a 1900 square feet house, the market value is $350,000, and they have $100,000 of mortgage still to pay. They also have approximately $125,000 in savings. They have 2 children, Amal and Sahar, who are 10 and 7 years old. Mr. and Mrs. Khan would like to start saving for their education, and they want to provide them with $100,000 each when the children finish their post-secondary education. Mr. and Mrs. Khan's expenses for the office are about $80,000 annually which includes the salary for an assistant. During the first year, their objective was to break-even, which they achieved. Their total revenue will be around $200,000 for the next 3 years and will grow to about $300,000 annually after 3 years. They currently plan to retire by the time they turn 60. So, they would like to save aggressively for their retirement as they will not have a pension plan. For the next 3 years, their after-tax monthly income will be about $8,000. Their monthly expenses include mortgage ($500) utilities ($350), property tax ($300), car expenses ($900), groceries and others ($1250), and miscellaneous expenses ($650)Step by Step Solution
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