Need income statement, balance sheet, statement of owner equity/retained earnings, statement of cash flow created

Scenario: You are an accountant at Rock Castle Construction. Your boss has asked that you create general purpose financial statements from a trial balance that he has created for you. Additionally, the company is for sale and you need to draft a letter to potential buyers explaining the overall financial health and profitability of the business. You should use several appropriate financial measure formulas as evidence (hint we covered a few of the many possible formulas in discussion posts). Your boss has strongly reminded you that the company needs to sell or you may be out of a job. You have been strongly encouraged to write a very positive letter to potential buyers Generally, buyers are most interested in knowing about profits Required: 1.) Create the four general purpose financial statements for the year ended Dec 31, 2019 i.e. Income statement, Balance Sheet, Statement of Owners Equity/Retained Earnings, Statement of Cash Flows (some will come from the 2018 trail balance), 2.) Write a letter to potential buyers. 2.50 PM 12/1519 Accrual Basis Rock Castle Construction Trial Balance As of December 31, 2019 10300 Savings 10100 Checking 10400 Petty Cash 11000 Accounts Receivable 12000 Undeposited Funds 12100 Inventory Asset 12800 - Employee Advances 13700 Pre-paid Insurance 13400 Retainage Receivable 1600 scooter 15000 Furniture and Equipment 15100 Vehicles 15200 Buildings and improvements 15300 Construction Equipment 16900. Land 17000 Accumulated Depreciation 18700 - Security Deposits 20000 Accounts Payable 20500 QuickBooks Credit Card 20000 Caloll Credit Card 24000 Payroll Liabilities:24010 Federal Withholding 24000 - Payroll Liabilities 24020 - FICA Payable 24000 Payroll Liabilities:24030 ALIC Payable 24000 Payroll Liabide 24040 - FUTA Payable 24000 Payroll Liabilities: 24050 State Withholding 24000 Payroll Liabilities:24060 SUTA Payable 24000 Payroll Liabilities:24070 State Disability Payable 24000 Payroll Liabilities:24080 Worker's Compensation 24000 Payroll Liabilities: 24100 Emp Health ins Payable 25600 Sales Tax Payable 2600 Scooter Loan 23000 Loan Vehicles (Van) 23100 Loan Vehicles (Utility Truck) 23200 Loan Vehicle Pickup Truck) 28100 Loan. Construction Equipment 28200 Loan - Furniture Office Equip 25700 Note Payable-Bank of Anytity 28900 Mortgage - Office Building 30100 Capital Stock 32000 - Retained Earnings 40100 Construction Income 40100 Construction Income: 40110 - Design income 40100 Construction Income:40130 - Labor Income 40100 - Construction Income:40140 - Materials income Dec 31,19 Det Credit 17.910-19 35.068.40 75505 92.707 93 2.44000 30.68338 83200 4,050 00 3.70302 400000 34 326.00 78 935 91 325 000 00 15.300.00 50.000.00 110 344 50 1.720.00 15,53530 150 09420 382.62 136400 2,11832 0.00 10000 29919 110.00 4813 1.21431 150.00 957 63 4000 DO 10.501 47 19.936 91 22 54100 13.91132 21 000 00 2.693 21 296 23 00 39.27275 61.75676 000 36.729 25 208. 225.42 119.920 57 2:50 PM 12/15/19 Accrual Basis Rock Castle Construction Trial Balance As of December 31, 2019 Dec 31, 19 Debit Credit 82.710 35 48 35 1.223 75 898 05 14,766.19 1.850 00 99.435.90 700 00 63 217.95 797 10 201.81 44.95 1.588.70 2.850 24 2406 00 300.00 40100 Construction Income:40150 Subcontracted Labor Income 40100 Construction Income:40199 - Less Discounts given 40500 Reimbursement Income:40520 - Permit Reimbursement Income 40500 Reimbursement Income:40530 Reimbursed Freight & Delivery 50100 Cost of Goods Sold 54000. Job Expenses: 54200. Equipment Rental 54000 Job Expenses: 54300. Job Materials 54000 - Job Expenses: 54400 - Permits and Licenses 54000 Job Expenses: 54500 - Subcontractors 54000 - Job Expenses 54520 - Freight & Delivery 54000 Job Expenses:54599 Less Discounts Taken food 60100 - Automobile:50110 - Fuel 60100 - Automobile:60120 - Insurance 60100 - Automobile:60130 - Repairs and Maintenance 60300 Bad debt 50600. Bank Service Charges 62100 Insurance:62110 - Disability Insurance 62100 Insurance:62120 - Liability Insurance 62100 - Insurance:62130 - Work Comp 62400 - Interest Expense:62420 - Loan Interest 62700 - Payroll Expenses:62710 Gross Wages 62700 Payroll Expenses:62720 Payroll Taxes 62700 Payroll Expenses:62730 - FUTA Expense 62700 Payroll Expenses:62740 - SUTA Expense 63100. Postage 63600 - Professional Fees:63610 - Accounting 54200 Repairs:64210 Building Repairs 64200 - Repairs:54220 - Computer Repairs 64200 - Repairs:64230 Equipment Repairs 64800 - Tools and Machinery 65100 Utilities:65110 Gas and Electric 65100 Utilities:65120 - Telephone 65100 Utilities:65130 Water 70100 Other Income 70200 Interest Income TOTAL 125.00 582.06 5,885 96 13,657.07 151,995.65 110.400.10 8.445,61 268.00 1.233 50 10420 250.00 175.00 0.00 1.350.00 2820 68 1.164 16 841.15 264.00 146.80 229.16 1.225,000.48 1.225,000.48 2.54 PM 12/1519 Accrual Basis Rock Castle Construction Trial Balance As of December 31, 2018 10300 - Savings 10100 Checking 10400 Petty Cash 11000 Accounts Receivable 12000 Undeposited Funds 12100 Inventory Asset 12800 Employee Advances 13100 Pre-paid Insurance 13400 - Retainage Receivable 15000 Furniture and Equipment 15100 Vehicles 15200 Buildings and improvements 15300 Construction Equipment 16500 Land 17000. Accumulated Depreciation 18700 - Security Deposits 20000 Accounts Payable 20500 - QuickBooks Credit Card 20600Calor Credit Card 24000 Payroll Liabilities:24010 - Federal Withholding 24000 Payroll Liabilities:24020 FICA Payable 24000 Payroll Liabilities: 24040FUTA Payable 24000 Payroll Liabilities:24050 State Withholding 24000 Payroll Liabilities:24060-SUTA Payable 24000 Payroll Liabilities:24070 State Disability Payable 24000 Payroll Liabilities: 24080 - Worker's Compensation 25500 - Sales Tax Payable 23000 Loan - Vehicles (Van) 23100 Loan Vehicles Utility Truck 23200 Loan Vehicles (Pickup Truck) 26100 Loan - Construction Equipment 28200 Loan - Furniture Office Equip 28700 Note Payable - Bank of Anycity 28000 Mortgage - Office Building 30100 Capital Stock 32000 Retained Earnings 40100 Construction Income: 40110 Design Income 40100 Construction Income: 40130 - Labor Income 40100 Construction income: 40140 Materials income 40100 Construction Income:40150 Subcontracted Labor Income 40500. Reimbursement income: 40520 Permit Reimbursement Income 50100 Cost of Goods Sold 54000 Job Expenses 54300Job Materials 54000 Job Expenses-54400. Permits and Licenses Dec 31,18 Debit Credit 15.38103 38.810 15 500.00 21.249.39 18.252.00 12.75704 770.00 4.54302 1.79572 22 200 78.936.91 325,000.00 15.300.00 90,000.00 110 344 50 1.72000 13.1000g 0.00 530.00 0.00 0.00 000 000 0.00 0.00 0.00 7218 15.290.52 19,936 91 22 541.00 14343 11 21 000.00 31. 18052 295283-00 39.273.75 36.213.97 3,400,00 16,335 00 36 023.77 112.666 50 83500 5.620.96 12.171 60 2:54 PM 12/15/19 Accrual Basis Rock Castle Construction Trial Balance As of December 31, 2018 54000 Job Expenses:54500 - Subcontractors 60100 Automobile:60110 Fuel 60100 - Automobile:60120 - Insurance 60100 . Automobile:60130. Repairs and Maintenance 60600. Bank Service Charges 60900 Depreciation Expense 62100 - Insurance:62110 Disability Insurance 62100 Insurance:62120 Liability Insurance 62100. Insurance:62130 Work Comp 62400 Interest Expense:62420 Loan Interest 63600 Professional Fees:63610 Accounting 64200 Repairs:64220. Computer Repairs 64200 Repairs:64230 Equipment Repairs 84800 - Tools and Machinery 65100 Utilities:65110 Gas and Electric 65100 Utilities:65120 Telephone 65100 Utilities:65130 - Water 70200. Interest Income TOTAL Dec 31, 18 Debit Credit 53,350.00 1.715.00 2,850 24 2,550,00 150.00 44,435.91 600.00 5.092.98 3,300.00 4.705 48 250.00 714.00 1.800.00 1.457.91 1.841.43 880.00 288.00 281.03 790.750.86 790.750.86 Scenario: You are an accountant at Rock Castle Construction. Your boss has asked that you create general purpose financial statements from a trial balance that he has created for you. Additionally, the company is for sale and you need to draft a letter to potential buyers explaining the overall financial health and profitability of the business. You should use several appropriate financial measure formulas as evidence (hint we covered a few of the many possible formulas in discussion posts). Your boss has strongly reminded you that the company needs to sell or you may be out of a job. You have been strongly encouraged to write a very positive letter to potential buyers Generally, buyers are most interested in knowing about profits Required: 1.) Create the four general purpose financial statements for the year ended Dec 31, 2019 i.e. Income statement, Balance Sheet, Statement of Owners Equity/Retained Earnings, Statement of Cash Flows (some will come from the 2018 trail balance), 2.) Write a letter to potential buyers. 2.50 PM 12/1519 Accrual Basis Rock Castle Construction Trial Balance As of December 31, 2019 10300 Savings 10100 Checking 10400 Petty Cash 11000 Accounts Receivable 12000 Undeposited Funds 12100 Inventory Asset 12800 - Employee Advances 13700 Pre-paid Insurance 13400 Retainage Receivable 1600 scooter 15000 Furniture and Equipment 15100 Vehicles 15200 Buildings and improvements 15300 Construction Equipment 16900. Land 17000 Accumulated Depreciation 18700 - Security Deposits 20000 Accounts Payable 20500 QuickBooks Credit Card 20000 Caloll Credit Card 24000 Payroll Liabilities:24010 Federal Withholding 24000 - Payroll Liabilities 24020 - FICA Payable 24000 Payroll Liabilities:24030 ALIC Payable 24000 Payroll Liabide 24040 - FUTA Payable 24000 Payroll Liabilities: 24050 State Withholding 24000 Payroll Liabilities:24060 SUTA Payable 24000 Payroll Liabilities:24070 State Disability Payable 24000 Payroll Liabilities:24080 Worker's Compensation 24000 Payroll Liabilities: 24100 Emp Health ins Payable 25600 Sales Tax Payable 2600 Scooter Loan 23000 Loan Vehicles (Van) 23100 Loan Vehicles (Utility Truck) 23200 Loan Vehicle Pickup Truck) 28100 Loan. Construction Equipment 28200 Loan - Furniture Office Equip 25700 Note Payable-Bank of Anytity 28900 Mortgage - Office Building 30100 Capital Stock 32000 - Retained Earnings 40100 Construction Income 40100 Construction Income: 40110 - Design income 40100 Construction Income:40130 - Labor Income 40100 - Construction Income:40140 - Materials income Dec 31,19 Det Credit 17.910-19 35.068.40 75505 92.707 93 2.44000 30.68338 83200 4,050 00 3.70302 400000 34 326.00 78 935 91 325 000 00 15.300.00 50.000.00 110 344 50 1.720.00 15,53530 150 09420 382.62 136400 2,11832 0.00 10000 29919 110.00 4813 1.21431 150.00 957 63 4000 DO 10.501 47 19.936 91 22 54100 13.91132 21 000 00 2.693 21 296 23 00 39.27275 61.75676 000 36.729 25 208. 225.42 119.920 57 2:50 PM 12/15/19 Accrual Basis Rock Castle Construction Trial Balance As of December 31, 2019 Dec 31, 19 Debit Credit 82.710 35 48 35 1.223 75 898 05 14,766.19 1.850 00 99.435.90 700 00 63 217.95 797 10 201.81 44.95 1.588.70 2.850 24 2406 00 300.00 40100 Construction Income:40150 Subcontracted Labor Income 40100 Construction Income:40199 - Less Discounts given 40500 Reimbursement Income:40520 - Permit Reimbursement Income 40500 Reimbursement Income:40530 Reimbursed Freight & Delivery 50100 Cost of Goods Sold 54000. Job Expenses: 54200. Equipment Rental 54000 Job Expenses: 54300. Job Materials 54000 - Job Expenses: 54400 - Permits and Licenses 54000 Job Expenses: 54500 - Subcontractors 54000 - Job Expenses 54520 - Freight & Delivery 54000 Job Expenses:54599 Less Discounts Taken food 60100 - Automobile:50110 - Fuel 60100 - Automobile:60120 - Insurance 60100 - Automobile:60130 - Repairs and Maintenance 60300 Bad debt 50600. Bank Service Charges 62100 Insurance:62110 - Disability Insurance 62100 Insurance:62120 - Liability Insurance 62100 - Insurance:62130 - Work Comp 62400 - Interest Expense:62420 - Loan Interest 62700 - Payroll Expenses:62710 Gross Wages 62700 Payroll Expenses:62720 Payroll Taxes 62700 Payroll Expenses:62730 - FUTA Expense 62700 Payroll Expenses:62740 - SUTA Expense 63100. Postage 63600 - Professional Fees:63610 - Accounting 54200 Repairs:64210 Building Repairs 64200 - Repairs:54220 - Computer Repairs 64200 - Repairs:64230 Equipment Repairs 64800 - Tools and Machinery 65100 Utilities:65110 Gas and Electric 65100 Utilities:65120 - Telephone 65100 Utilities:65130 Water 70100 Other Income 70200 Interest Income TOTAL 125.00 582.06 5,885 96 13,657.07 151,995.65 110.400.10 8.445,61 268.00 1.233 50 10420 250.00 175.00 0.00 1.350.00 2820 68 1.164 16 841.15 264.00 146.80 229.16 1.225,000.48 1.225,000.48 2.54 PM 12/1519 Accrual Basis Rock Castle Construction Trial Balance As of December 31, 2018 10300 - Savings 10100 Checking 10400 Petty Cash 11000 Accounts Receivable 12000 Undeposited Funds 12100 Inventory Asset 12800 Employee Advances 13100 Pre-paid Insurance 13400 - Retainage Receivable 15000 Furniture and Equipment 15100 Vehicles 15200 Buildings and improvements 15300 Construction Equipment 16500 Land 17000. Accumulated Depreciation 18700 - Security Deposits 20000 Accounts Payable 20500 - QuickBooks Credit Card 20600Calor Credit Card 24000 Payroll Liabilities:24010 - Federal Withholding 24000 Payroll Liabilities:24020 FICA Payable 24000 Payroll Liabilities: 24040FUTA Payable 24000 Payroll Liabilities:24050 State Withholding 24000 Payroll Liabilities:24060-SUTA Payable 24000 Payroll Liabilities:24070 State Disability Payable 24000 Payroll Liabilities: 24080 - Worker's Compensation 25500 - Sales Tax Payable 23000 Loan - Vehicles (Van) 23100 Loan Vehicles Utility Truck 23200 Loan Vehicles (Pickup Truck) 26100 Loan - Construction Equipment 28200 Loan - Furniture Office Equip 28700 Note Payable - Bank of Anycity 28000 Mortgage - Office Building 30100 Capital Stock 32000 Retained Earnings 40100 Construction Income: 40110 Design Income 40100 Construction Income: 40130 - Labor Income 40100 Construction income: 40140 Materials income 40100 Construction Income:40150 Subcontracted Labor Income 40500. Reimbursement income: 40520 Permit Reimbursement Income 50100 Cost of Goods Sold 54000 Job Expenses 54300Job Materials 54000 Job Expenses-54400. Permits and Licenses Dec 31,18 Debit Credit 15.38103 38.810 15 500.00 21.249.39 18.252.00 12.75704 770.00 4.54302 1.79572 22 200 78.936.91 325,000.00 15.300.00 90,000.00 110 344 50 1.72000 13.1000g 0.00 530.00 0.00 0.00 000 000 0.00 0.00 0.00 7218 15.290.52 19,936 91 22 541.00 14343 11 21 000.00 31. 18052 295283-00 39.273.75 36.213.97 3,400,00 16,335 00 36 023.77 112.666 50 83500 5.620.96 12.171 60 2:54 PM 12/15/19 Accrual Basis Rock Castle Construction Trial Balance As of December 31, 2018 54000 Job Expenses:54500 - Subcontractors 60100 Automobile:60110 Fuel 60100 - Automobile:60120 - Insurance 60100 . Automobile:60130. Repairs and Maintenance 60600. Bank Service Charges 60900 Depreciation Expense 62100 - Insurance:62110 Disability Insurance 62100 Insurance:62120 Liability Insurance 62100. Insurance:62130 Work Comp 62400 Interest Expense:62420 Loan Interest 63600 Professional Fees:63610 Accounting 64200 Repairs:64220. Computer Repairs 64200 Repairs:64230 Equipment Repairs 84800 - Tools and Machinery 65100 Utilities:65110 Gas and Electric 65100 Utilities:65120 Telephone 65100 Utilities:65130 - Water 70200. Interest Income TOTAL Dec 31, 18 Debit Credit 53,350.00 1.715.00 2,850 24 2,550,00 150.00 44,435.91 600.00 5.092.98 3,300.00 4.705 48 250.00 714.00 1.800.00 1.457.91 1.841.43 880.00 288.00 281.03 790.750.86 790.750.86