I was wondering if I could get some help with the balance sheet, statement on stockholder's equity, and ending inventory for this problem.

1. 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.

2. 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:

1. What is your companys current ratio?
2. What is your companys debt to equity ratio?
3. What is your companys cash as a percentage of assets?
4. What is your companys average days to collect receivables?
5. 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