International Auditing Cases 1 PURPOSE OF FINANCIAL REPORTING 1st period An investor owns an amount of 100 T. He wants to create a business producing modern stylish chocolate. He is willing to invest the total amount. Please prepare an opening balance sheet. 2nd period The investor acquires a machine for production purposes for 100 T and raw material (chocolate beans) at an amount of 50 T. How are these transactions reflected in the balance sheet? 3rd period Chocolate beans at an amount of 20 T are used in the first production process. Beautiful chocolate bars at different tastes have been produced. The amount of the salaries for employees was 80 T. How are these transactions reflected in the balance sheet? 4th period The chocolate bars are sold on the market at an amount of 120 T. How are these transactions reflected in the balance sheet? Please discuss how the different transaction in period 1 to 4 change the financial position - the performance - the cash position