please help with question A

ASSETS Cash Filters Vehicles LIABILITIES & OWNERS' EQUITY Pald-in Capital Retained Earnings Prepaid Costs Debt $25,000 $200,000 $25,000 $200,000 (540,000) ($20,000) ($20,000) ($100,000) $40,000 $20,000 $20,000 $100,000 YEAR 1 Beginning-of-year activities 1 Founders' Investment, HBS Prize Money 2 Alumnus Investment 3 Blue Future Contract Charge 4 Slowsand Filters 5 Motorcycles and Trucks 6 Prepaid Marketing, Brand Ambassador Through-the-year activities 7 Revenues Revenue Underreporting Cost of Revenue, Vendor Compensation 8 Technicians' Wages 9 Local Management Salaries 10 Sales Staff Salaries 11 Water Testing & Filter Maintenance 12 Marketing Expenses 13 Vehicle Expenses 14 Other Costs Year-closing activities 15 Depreciation Blue Future Contract Slowsand Filters Motorcycles and Trucks $219,000 ($32,850) ($37,230) 1$3,600) ($120,000) $219,000 ($32,850) ($37,230) ($3,600) ($120,000) (510,200) ($10,000) ($2,500) ($29.784) (550,000) ($10,200) ($60,000) ($2,500) ($29.784) ($2,667) ($2,667) (51,333) ($1,33 (54,000) ($4,000, INSTRUCTIONS The following worksheet is called a Balance Sheet Equation Worksheet. The worksheet lists the key events in the life of UWP over years 1 through 3: each of these events is likely to affect the financial statements of UWP. The impact of the events on the UWP Balance Sheet for years 1 and 2 has been sketched out. a. Using the completed transactions from years 1 and 2 as a guide, fill in the worksheet for year 3. b. Now, prepare an Income Statement, Balance Sheet, and Cash Flow Statement for years 2 and 3. c. Do you agree with all of the accounting assumptions in the worksheet? If not, what would you change? B D E F H TITECT LOS VCIIICIES TIeruru CUL ucus M CAMILOI N HIC CURRICULARES $17,836 $18,667 $16,000 $87,333 $0 $225,000 ($85,164 $1,000,000 ($487,500) ($492,500) $1,000,000 $487,500 $492,500 YEAR 2 Opening Balances Beginning-of-year activities 1 Debt 2 Slowsand Filters 3 Motorcycles and Trucks Through-the-year activities 7 Revenues Revenue Underreporting Cost of Revenue, Vendor Compensation 8 Technicians' Wages 9 Local Management Salaries 10 Sales Staff Salaries 11 Water Testing & Filter Maintenance 12 Marketing Expenses 13 Vehicle Expenses 14 Other Costs Year-closing activities 15 Depreciation Blue Future Contract Slowsand Filters Motorcycles and Trucks 16 Repay Debt 17 Interest Charge $8,760,000 ($1,314,000) ($1,489,200) ($120,000) ($325,000) ($36,000) ($408,000) ($25,000) ($65,000) ($1,191,360) $8,760,000 ($1,314,000) ($1,489,200) ($120,000) ($325,000) ($36,000) (5408,000) ($75,000) ($65,000) ($1,191,360) ($50,000) ($2,667) ($33,833 ($102,500) ($2,667) ($33,833) ($102,500) ($1,000,000) ($100,000) ($1,000,000) YEAR 2 CLOSING TOTALS ($ 100,000) $2,724,276 $472,334 $406,000 Copyright $34,666 Instructions $0 BSE Worksheet $225,000 $3,412,276 ASSETS UABIUTIES 2 OWNERS' EOUITY Paid-in Capital Retained Earnings Cash Filters Vehicles Prepaid Costs Debt YEAR 3 Opening Balances Beginning-of-year ectivities 1 Slowsand Filters 2 Motorcycles and Trucks Through-the-year activities 7 Revenues Revenue Underreporting Cost of Revenue. Vendor Compensation 8 Technicians' Wages 9 Local Management Salaries 10 Sales Staff Salaries 11 Water Testing & Filter Maintenance 12 Marketing Expenses 13 Vehicle Expenses 14 Other Costs Year-closing activities 15 Depreciation Blue Future Contract Slowsand Filters Motorcycles and Trucks YEAR 3 CLOSING TOTALS $0 $0 $0 $0 SO SO SO ASSETS Cash Filters Vehicles LIABILITIES & OWNERS' EQUITY Pald-in Capital Retained Earnings Prepaid Costs Debt $25,000 $200,000 $25,000 $200,000 (540,000) ($20,000) ($20,000) ($100,000) $40,000 $20,000 $20,000 $100,000 YEAR 1 Beginning-of-year activities 1 Founders' Investment, HBS Prize Money 2 Alumnus Investment 3 Blue Future Contract Charge 4 Slowsand Filters 5 Motorcycles and Trucks 6 Prepaid Marketing, Brand Ambassador Through-the-year activities 7 Revenues Revenue Underreporting Cost of Revenue, Vendor Compensation 8 Technicians' Wages 9 Local Management Salaries 10 Sales Staff Salaries 11 Water Testing & Filter Maintenance 12 Marketing Expenses 13 Vehicle Expenses 14 Other Costs Year-closing activities 15 Depreciation Blue Future Contract Slowsand Filters Motorcycles and Trucks $219,000 ($32,850) ($37,230) 1$3,600) ($120,000) $219,000 ($32,850) ($37,230) ($3,600) ($120,000) (510,200) ($10,000) ($2,500) ($29.784) (550,000) ($10,200) ($60,000) ($2,500) ($29.784) ($2,667) ($2,667) (51,333) ($1,33 (54,000) ($4,000, INSTRUCTIONS The following worksheet is called a Balance Sheet Equation Worksheet. The worksheet lists the key events in the life of UWP over years 1 through 3: each of these events is likely to affect the financial statements of UWP. The impact of the events on the UWP Balance Sheet for years 1 and 2 has been sketched out. a. Using the completed transactions from years 1 and 2 as a guide, fill in the worksheet for year 3. b. Now, prepare an Income Statement, Balance Sheet, and Cash Flow Statement for years 2 and 3. c. Do you agree with all of the accounting assumptions in the worksheet? If not, what would you change? B D E F H TITECT LOS VCIIICIES TIeruru CUL ucus M CAMILOI N HIC CURRICULARES $17,836 $18,667 $16,000 $87,333 $0 $225,000 ($85,164 $1,000,000 ($487,500) ($492,500) $1,000,000 $487,500 $492,500 YEAR 2 Opening Balances Beginning-of-year activities 1 Debt 2 Slowsand Filters 3 Motorcycles and Trucks Through-the-year activities 7 Revenues Revenue Underreporting Cost of Revenue, Vendor Compensation 8 Technicians' Wages 9 Local Management Salaries 10 Sales Staff Salaries 11 Water Testing & Filter Maintenance 12 Marketing Expenses 13 Vehicle Expenses 14 Other Costs Year-closing activities 15 Depreciation Blue Future Contract Slowsand Filters Motorcycles and Trucks 16 Repay Debt 17 Interest Charge $8,760,000 ($1,314,000) ($1,489,200) ($120,000) ($325,000) ($36,000) ($408,000) ($25,000) ($65,000) ($1,191,360) $8,760,000 ($1,314,000) ($1,489,200) ($120,000) ($325,000) ($36,000) (5408,000) ($75,000) ($65,000) ($1,191,360) ($50,000) ($2,667) ($33,833 ($102,500) ($2,667) ($33,833) ($102,500) ($1,000,000) ($100,000) ($1,000,000) YEAR 2 CLOSING TOTALS ($ 100,000) $2,724,276 $472,334 $406,000 Copyright $34,666 Instructions $0 BSE Worksheet $225,000 $3,412,276 ASSETS UABIUTIES 2 OWNERS' EOUITY Paid-in Capital Retained Earnings Cash Filters Vehicles Prepaid Costs Debt YEAR 3 Opening Balances Beginning-of-year ectivities 1 Slowsand Filters 2 Motorcycles and Trucks Through-the-year activities 7 Revenues Revenue Underreporting Cost of Revenue. Vendor Compensation 8 Technicians' Wages 9 Local Management Salaries 10 Sales Staff Salaries 11 Water Testing & Filter Maintenance 12 Marketing Expenses 13 Vehicle Expenses 14 Other Costs Year-closing activities 15 Depreciation Blue Future Contract Slowsand Filters Motorcycles and Trucks YEAR 3 CLOSING TOTALS $0 $0 $0 $0 SO SO SO