Question
You are the CFO of a retail company, VL Inc. You just closed Fiscal Year 2020 and completed the balance sheets, income statements, and statement
You are the CFO of a retail company, VL Inc. You just closed Fiscal Year 2020 and completed the balance sheets, income statements, and statement of cashflows. Company CEO, Lee, is asking for a detail analysis of the company performance and projected information for 2021. During a recent senior manager meeting, Abbie, vice president of merchandising, expressed concern with one of the company's key suppliers, K Goods, Inc. This supplier is experiencing some financial difficulties due to the recent unexpected economical conditions. It is in need of external financing or it faces potential closure due to insolvency. Abbie suggests VL to invest into K Goods, since this will make strategic sense.She believes it is best to invest about 15% into K Goods' voting common stocks (Purchase cost of $10,500,000), but demand it makes her one of the directors of the board, so she can have influence into the company's future direction. Lee is leaning toward investing into K Goods in 2021 but has not made a final decision. Lee is waiting on your analysis of the current VL performance and the potential effects of investing into K Goods in 2021. All numbers and information provided are hypothetical.
Question:
1.Create 2021 financial statements with investing into K Goods by using Exhibit 3.
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