Survey of Accounting READ CAREFULLY Comprehensive Assignment - Financial Statements & Flexible Budget Before you open the Canvas quiz complete the following: 1. Review the list of transactions and record the entries to the accounting equation. For your inventory tracking tab and the events recorded to the accounting equation, you can assume the following: The company uses FIFO as the method to record/track inventory Beginning inventory for Year 2 of operations is made up of 41,000 units originally purchased at $8.00 per unit which equals Beginning Inventory of $328,000. 2. You will use the completed accounting equation and templates provided to complete the following financial statements: Income Statement Classified Balance Sheet Cash Flow Statement Statement on Stockholder's Equity Inventory Tracking Sheet (not one of the formal financial statements-available for use in reviewing accounting equation entries. 3. Pro-Forma Flexible budget (using template provided) to include the following assumptions: Actual & pro-forma sales revenue at a projected sales price of $24.50 per unit at each volume level Actual & pro-forma cost of goods sold use Year 2 actual COGS for actual results column, use average purchase price of inventory (from inventory tracking sheet) for pro-forma columns at the varying volume levels. Actual & pro-forma operating expenses-assume all operating expenses are fixed costs. EX: sales & marketing; assume all employees are paid a salary. Hint: There is only one cost in the operating expenses that you'll project for Year 3 (it is still fixed), all other fixed costs will remain the same in all columns. Calculate pro-forma dollar amount of purchases for a desired ending inventory of $175,200, assuming: your ending inventory from the accounting equation year 2 is your beginning inventory for budgeting purposes Estimated COGS using actual units sold in Y2* average inventory purchase price Calculate pro-forma Y3 breakeven in units and sales dollars using your flexible budget at actual units sold in Y2 & average COGS from Y2 (show your work on the excel file)