I was wondering if I could get some help with the balance sheet, statement on stockholder's equity, and ending inventory for this problem.
- You will use the CORRECTED accounting equation and templates provided to complete the following financial statements:
- Income Statement
- Vertical Balance Sheet
- Cash Flow Statement
- Statement on Stockholders Equity
- Inventory Tracking Sheet (not one of the formal financial statements available for use in reviewing accounting equation entries.
- Pro-Forma Flexible budget (using template provided) to include the following assumptions:
- Sales Revenue at a projected sales price of $3.50 per unit at each volume level
- Cost of Goods Sold (use Year 2 actual COGS for Master Budget, use average purchase price of inventory (from inventory tracking sheet) for pro-forma columns
- Operating Expenses Fixed Costs from your corrected accounting equation
- Calculate purchases for desired ending inventory of $35,000, assuming your ending inventory from the accounting equation year 2 is your beginning inventory for budgeting purposes.
- A breakeven calculation (show your work on the excel file)
Answer the following questions about the information you have filled out:
- What is your companys current ratio?
- What is your companys debt to equity ratio?
- What is your companys cash as a percentage of assets?
- What is your companys average days to collect receivables?
- What is your companys average days to sell inventory?
I attached the transaction list. Thank you in advance!
D 1 2 Balance Sheet Year 2 s Assets 6 Cash 7 $ 10 11 12 13 Total Assets 14 is Liabilities 16 Accounts Payable 17 18 19 20 Total Liabilities $ 21 22 Stockholders Equity $ 23 24 25 26 Total Stockholders Equity $ 27 28 29 Total Liabilities and Stockholders Equity $ 30 31 32 33 B C D E 2 Statement on Stockholders' Equity Year 2 3 5 6 Beginning Common Stock & APIC 7 Plus: common stock issued 8 Plus: additional paid in capital 9 Ending Common Stock $ 10 11 Beginning Retained Earnings 12 Plus: Net Income 13 Less: Dividends 14 Ending Retained Earnings $ 15 16 Total Stockholders' Equity $ 17 18 19 20 B E F L M 1 2 Goods Available for Sale Cost of Goods Sold Ending Inventory Price/ Price/ Price/ Units Unit Total Units Unit Total Units Unit Total 3 Beg Bal 4 Purchases: 5 4 25,000 1.15 28,750 6 5 (15,000) 1.15 (17.250) 7 8 170,000 1.50 255,000 8 9 (10,000) 1.15 (11,500) (165,000) $1.50 $ (247,500) 12 275,000 $1.35 $ 371,250 13 (5,000) $1.50 $ (7,500) (195,000 $1.35 $ (263,250) 13 16 300,000 1.15 345,000 14 Total 770,000 $1,000,000 (390,000) $ (547,000) 15 16 NOTE: You will need to calculate your estimated COGS for the budget template tab using the Weighted Avergae method 17 discussed in LO5-6 9 10 11 12 18 19 20 Events Assets Beginning Balances as of Dec 31, Year 1 257,000.00 $ 17.500.00 $ 28,000.00 $ 50,000.00 $ 250,000.00 Balance at end of Yr 2 $ 257,000 $ 17,500 $ 28,000 $ 50,000 $ 250,000 Total Assets Total Liabilities & Equity 594,167 594,167 Balance Sheet Liab Equity 8,333.00 $ 118,000.00 $ 200,000.00 $ 100,000.00 $ 176,167.00 8,333 $ 118,000 $ 200,000 $ 100,000 $ 176,167 Income Statement Statement of Cash Flows Type Amount Net Change in Cash Survey of Accounting READ CAREFULLY Comprehensive Assignment - Financial Statements & Flexible Budget Year 2 Transaction List: Acquired $550,000 by signing a note payable with a local bank Sold 25,000 shares of $22 Common Stock for $1,500,000 Purchased Equipment for $300,000 Purchased Inventory on Account - 25,000 Units at $1.15 per unit Sold 15,000 units at $3.50 on Account Record COGS for Sales on Account Collect $70,000 on Account Paid $117,250 of Accounts Payable Purchased Inventory on Account - 170,000 Units at $1.50 per unit Sold 175,000 units at $3.50 on Account Record COGS for Sales on Account Collect $472,500 on Account Paid $218,600 of Accounts Payable Purchased Inventory on Account - 275,000 Units at $1.35 per unit Sold 200,000 units at $3.50 on Account Record COGS for Sales on Account Collect $735,000 on Account Purchased Inventory on Account - 300,000 Units at $1.15 per unit Paid $494,150 of Accounts Payable Paid Sales & Marketing Expenses of $30,000 Paid Operating Expenses of $75,708 Record Wages Payable of $40,000 Paid Product Line Research & Development Expenses of $150,000 Paid Advertising Expenses of $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. Record first year of depreciation expense on equipment purchased in Year 2 with salvage value of $38,000 & useful life of 7 Yrs Declared a $10,000 cash dividend for stockholders Paid a $10,000 cash dividend for stockholders D 1 2 Balance Sheet Year 2 s Assets 6 Cash 7 $ 10 11 12 13 Total Assets 14 is Liabilities 16 Accounts Payable 17 18 19 20 Total Liabilities $ 21 22 Stockholders Equity $ 23 24 25 26 Total Stockholders Equity $ 27 28 29 Total Liabilities and Stockholders Equity $ 30 31 32 33 B C D E 2 Statement on Stockholders' Equity Year 2 3 5 6 Beginning Common Stock & APIC 7 Plus: common stock issued 8 Plus: additional paid in capital 9 Ending Common Stock $ 10 11 Beginning Retained Earnings 12 Plus: Net Income 13 Less: Dividends 14 Ending Retained Earnings $ 15 16 Total Stockholders' Equity $ 17 18 19 20 B E F L M 1 2 Goods Available for Sale Cost of Goods Sold Ending Inventory Price/ Price/ Price/ Units Unit Total Units Unit Total Units Unit Total 3 Beg Bal 4 Purchases: 5 4 25,000 1.15 28,750 6 5 (15,000) 1.15 (17.250) 7 8 170,000 1.50 255,000 8 9 (10,000) 1.15 (11,500) (165,000) $1.50 $ (247,500) 12 275,000 $1.35 $ 371,250 13 (5,000) $1.50 $ (7,500) (195,000 $1.35 $ (263,250) 13 16 300,000 1.15 345,000 14 Total 770,000 $1,000,000 (390,000) $ (547,000) 15 16 NOTE: You will need to calculate your estimated COGS for the budget template tab using the Weighted Avergae method 17 discussed in LO5-6 9 10 11 12 18 19 20 Events Assets Beginning Balances as of Dec 31, Year 1 257,000.00 $ 17.500.00 $ 28,000.00 $ 50,000.00 $ 250,000.00 Balance at end of Yr 2 $ 257,000 $ 17,500 $ 28,000 $ 50,000 $ 250,000 Total Assets Total Liabilities & Equity 594,167 594,167 Balance Sheet Liab Equity 8,333.00 $ 118,000.00 $ 200,000.00 $ 100,000.00 $ 176,167.00 8,333 $ 118,000 $ 200,000 $ 100,000 $ 176,167 Income Statement Statement of Cash Flows Type Amount Net Change in Cash Survey of Accounting READ CAREFULLY Comprehensive Assignment - Financial Statements & Flexible Budget Year 2 Transaction List: Acquired $550,000 by signing a note payable with a local bank Sold 25,000 shares of $22 Common Stock for $1,500,000 Purchased Equipment for $300,000 Purchased Inventory on Account - 25,000 Units at $1.15 per unit Sold 15,000 units at $3.50 on Account Record COGS for Sales on Account Collect $70,000 on Account Paid $117,250 of Accounts Payable Purchased Inventory on Account - 170,000 Units at $1.50 per unit Sold 175,000 units at $3.50 on Account Record COGS for Sales on Account Collect $472,500 on Account Paid $218,600 of Accounts Payable Purchased Inventory on Account - 275,000 Units at $1.35 per unit Sold 200,000 units at $3.50 on Account Record COGS for Sales on Account Collect $735,000 on Account Purchased Inventory on Account - 300,000 Units at $1.15 per unit Paid $494,150 of Accounts Payable Paid Sales & Marketing Expenses of $30,000 Paid Operating Expenses of $75,708 Record Wages Payable of $40,000 Paid Product Line Research & Development Expenses of $150,000 Paid Advertising Expenses of $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. Record first year of depreciation expense on equipment purchased in Year 2 with salvage value of $38,000 & useful life of 7 Yrs Declared a $10,000 cash dividend for stockholders Paid a $10,000 cash dividend for stockholders
