This is an example of financial statements for a small accounting company.This statements are just based on false data ,so you have to fix these financial statements examples according to instuctions given below( use any fiqures according to your own precepions)

1. If Y1 is supposed to be the opening Balance Sheet:

a. There should be no depreciation because this is at inception.

b. The depreciation takes place over the course of the next year, is included in the income statement and impacts balance sheet values at Year 1.

c. No accounts payable or accounts receivable?

2. Cost of Service

a. Must be broken down in a Note to the Financial Statement

i. Values must be reasonable

3. Salary expense

a. $70K to drive $1MM?

4. Cash Flow Statement

a. Most businesses offer credit to one another. Generally they have AR and AP on their balance sheet

i. If AP and AR are involved, your cash from customers wont match your income statement.