Survey of Accounting Comprehensive Simulation Assignment - Financial Statements & Flexible Budget Required: Use the list of transactions on the following page to complete the following: 1. Complete the Horizontal Balance Sheet (excel file available in Canvas) by recording all activity reported by your client (following page). 2. Using the completed Horizontal Balance Sheet, create an Income Statement & Vertical Balance Sheet by using the template provided in the excel file (in Canvas). 3. Create a flexible budget that shows expected revenues and expenses at three different volumes of ice cream bars sold (using the excel template). Show budgeted net income using actual sales in units, assumed increase in sales of 25,000 units and assumed increase in sales of 50,000 units a. This should include a proforma income statement with the following items: i. Sales Revenue at a projected sales price of $3.50 per unit at each volume level ii. Cost of Goods Sold using average purchase price per unit ii. Gross Profit iv. Operating Expenses - Fixed Costs pulled from your Horizontal Balance Sheet V. Net Income vi. Check Figure/Reflection - Does your calculated Net Income agree to your Horizontal Balance Sheet for your actual sales columna Why or why not? 4. Purchases for desired ending inventory of $25,000, assuming your ending inventory from the horizontal balance sheet is your beginning inventory for budgeting purposes. 5. A breakeven calculation (show your work on the excel file) of how many bars you need to sell in order to break even. All of these items should be clearly identifiable in your submitted file. States) Focus Transaction List: 1. Acquired $500,000 by signing a note payable with a local bank 2. Sold 25,000 shares of $22 par value Common Stock for $1,500,000 3. Purchased Equipment for $300,000 cash 4. Purchased 25,000 units of Inventory on Account at $1.15 per unit 5. Sold 20,000 units at $3.50 on Account 6. Collected $70,000 of Accounts Receivable 7. Paid $17.250 of Accounts Payable 8. Purchased 170,000 units of Inventory on Account at $1.05 per unit 9. Sold 153,000 units at $3.50 on Account 10. Collected $472,500 of accounts receivable 11. Paid $118,600 of Accounts Payable 12. Purchased 275,000 units of Inventory on Account at $1.35 per unit 13. Sold 215,000 units at $3.50 on Account 14. Collected $735,000 of accounts receivable 15. Paid $294,150 of Accounts Payable 16. Purchased 300,000 Units of Inventory on Account at $1.15 per unit 17. Record Sales & Marketing Expenses of $30,000 (paid in cash) 18. Record Operating Expenses of $75,708 (paid in cash) 19. Record Wage Expenses of $40,000 (paid in cash) 20. Record Product Line Research & Development Expenses of $150,000 (paid in cash) 21. Record Advertising Expenses of $87.500 (paid in cash) 22. 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. 23. Record Yc 1 Depreciation on Equipment with Salvage Value of $38,000 and useful life of 7 Yrs (straight-line depreciation) 24. Declared a $10,000 cash dividend for stockholders 25. Paid a $10,000 cash dividend for stockholders Income Statement Statement of Cash Flows Net Change in Cash Morso Bal Sheet Template Budget Template Fancial Statement Template + Home Formulas Data Review View Tell me Insert X Draw f x Page Layout Actual Units Sold Flexible Budget Actual Units Sold Actual Units Sold + 25,000 Actual Units Sold + 50,000 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Sales & Marketing Operating costs Wages Research & Dev Exp Advertising Expense Depreciation Exp Interest Expense Net Income Inventory Production Beginning Inventory + Purchases - Estimated COGS - Desired Ending "actual units at $1.15/unit Purchases = Breakeven Calcuation BE = FC / (CM/Unit) Horizontal Bal Sheet Template Budget Template Financial Statement Template + 338 w les me x fx 1 income Statement for Year 1 Sales Revenue Les Cost of Goods Sold 5 Gross Marg penses Sales & Marketing Operating costs Inventory Equipment Acumulated Deprecation Total Assets Accounts Payable Dividends Payable Research & Dev Bup Advertising Expense Depreciation Exp Interest Expense 15 Total Operating Expenses Total Liabilities Net income Loss) hades out Common Stock Additional Paid in Capital Total Stockholders Equity Total ities and Stockholders Equity Horizontal Sheet Template budget Template Financial Statement Template + Survey of Accounting Comprehensive Simulation Assignment - Financial Statements & Flexible Budget Required: Use the list of transactions on the following page to complete the following: 1. Complete the Horizontal Balance Sheet (excel file available in Canvas) by recording all activity reported by your client (following page). 2. Using the completed Horizontal Balance Sheet, create an Income Statement & Vertical Balance Sheet by using the template provided in the excel file (in Canvas). 3. Create a flexible budget that shows expected revenues and expenses at three different volumes of ice cream bars sold (using the excel template). Show budgeted net income using actual sales in units, assumed increase in sales of 25,000 units and assumed increase in sales of 50,000 units a. This should include a proforma income statement with the following items: i. Sales Revenue at a projected sales price of $3.50 per unit at each volume level ii. Cost of Goods Sold using average purchase price per unit ii. Gross Profit iv. Operating Expenses - Fixed Costs pulled from your Horizontal Balance Sheet V. Net Income vi. Check Figure/Reflection - Does your calculated Net Income agree to your Horizontal Balance Sheet for your actual sales columna Why or why not? 4. Purchases for desired ending inventory of $25,000, assuming your ending inventory from the horizontal balance sheet is your beginning inventory for budgeting purposes. 5. A breakeven calculation (show your work on the excel file) of how many bars you need to sell in order to break even. All of these items should be clearly identifiable in your submitted file. States) Focus Transaction List: 1. Acquired $500,000 by signing a note payable with a local bank 2. Sold 25,000 shares of $22 par value Common Stock for $1,500,000 3. Purchased Equipment for $300,000 cash 4. Purchased 25,000 units of Inventory on Account at $1.15 per unit 5. Sold 20,000 units at $3.50 on Account 6. Collected $70,000 of Accounts Receivable 7. Paid $17.250 of Accounts Payable 8. Purchased 170,000 units of Inventory on Account at $1.05 per unit 9. Sold 153,000 units at $3.50 on Account 10. Collected $472,500 of accounts receivable 11. Paid $118,600 of Accounts Payable 12. Purchased 275,000 units of Inventory on Account at $1.35 per unit 13. Sold 215,000 units at $3.50 on Account 14. Collected $735,000 of accounts receivable 15. Paid $294,150 of Accounts Payable 16. Purchased 300,000 Units of Inventory on Account at $1.15 per unit 17. Record Sales & Marketing Expenses of $30,000 (paid in cash) 18. Record Operating Expenses of $75,708 (paid in cash) 19. Record Wage Expenses of $40,000 (paid in cash) 20. Record Product Line Research & Development Expenses of $150,000 (paid in cash) 21. Record Advertising Expenses of $87.500 (paid in cash) 22. 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. 23. Record Yc 1 Depreciation on Equipment with Salvage Value of $38,000 and useful life of 7 Yrs (straight-line depreciation) 24. Declared a $10,000 cash dividend for stockholders 25. Paid a $10,000 cash dividend for stockholders Income Statement Statement of Cash Flows Net Change in Cash Morso Bal Sheet Template Budget Template Fancial Statement Template + Home Formulas Data Review View Tell me Insert X Draw f x Page Layout Actual Units Sold Flexible Budget Actual Units Sold Actual Units Sold + 25,000 Actual Units Sold + 50,000 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Sales & Marketing Operating costs Wages Research & Dev Exp Advertising Expense Depreciation Exp Interest Expense Net Income Inventory Production Beginning Inventory + Purchases - Estimated COGS - Desired Ending "actual units at $1.15/unit Purchases = Breakeven Calcuation BE = FC / (CM/Unit) Horizontal Bal Sheet Template Budget Template Financial Statement Template + 338 w les me x fx 1 income Statement for Year 1 Sales Revenue Les Cost of Goods Sold 5 Gross Marg penses Sales & Marketing Operating costs Inventory Equipment Acumulated Deprecation Total Assets Accounts Payable Dividends Payable Research & Dev Bup Advertising Expense Depreciation Exp Interest Expense 15 Total Operating Expenses Total Liabilities Net income Loss) hades out Common Stock Additional Paid in Capital Total Stockholders Equity Total ities and Stockholders Equity Horizontal Sheet Template budget Template Financial Statement Template +