Part II: Open Ended Accounting Problems Instructions: Determine a final numerical answer for each question. You will record your ANSWERS ONLY or THPS-1 Answer Submission Form on iCollege. For all questions (unless otherwise specifically instructed) round (if necessary) all answers to whole dollar amounts (ie., zero decimal places), but you will NOT record the dollar sign or any commas on iCollege. For example, round $24,302.84 to $24,303 and record this value or iCollege at 24303. USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 10-21 Using the assumptions below concerning the Fast Growth Company, construct income statements, balance sheets and cash inflow-outflow statements for the company for the months of January, February, and March: ASSUMPTIONS: Initial investment (made on January 1 when company begins operations)=$700,000 Selling price $60 per unit COGS variable cost $40 per unit Fixed costs $15,000 per month Credit policy net 45 days (assume all sales are on credit) Inventory policy 21-day supply (Note that this means inventory at the end of the month will be 21/30 of sales for that month. Thus, given that January sales 4,000 units (see below), January ending inventory will be 2,800 units). Inventory carried at cost (i.e., at $40 per unit) All bills are paid immediately (this implies that accounts payable and accruals - S0) Dividends 20% of monthly net income There are 30 days in every month. All revenues, costs, cash inflows and cash outflows are evenly distributed through the month. If additional funds are needed, these will be in the form of debt (ie., bank loans). The company will borrow money if cash $0 on the balance sheet. The amount borrowed will be what is necessary to balance the balance sheet with cash- SO. Monthly Sales: January 4,000 units, February 8,000 units, March 14,000 units For each month, your statements should include the accounts shown below: "Month" Income Statement Cash Revenue .COGS - Fixed costs Net income -Dividends Addition to retained earnings "Month" Balance Sheet Debt Accounts receivable Inventory Total assets Equity Total liab. & equity "Month" Cash Inflow Outflow Statement Total Cash inflows Payment for purchases Payment of fixed costs Dividends paid Net cash flow