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You will create your own imaginary company that will sell ONE product to its customers. You will set a selling price anywhere between $75 and

You will create your own imaginary company that will sell ONE product to its customers. You will set a selling price anywhere between $75 and $150 per unit and determine the total number of units sold during the year but it must be between 10,000 units and 100,000 whole units. You will use the Google Drive file to complete the project. You will be given an Adjusted Trial Balance for your company. Required: 1. Prepare a multi-step Income Statement and show the common-size percents. You will analyze this statement. 2. Prepare a Statement of Retained Earnings. 3. Prepare a classified Balance Sheet showing amounts for current, prior year and the dollar amount and percent of change. The common stock had 100,000 shares authorized and 95,000 shares issued and outstanding at the end of this year. 4. Prepare the Statement of Cash Flows using the indirect method (do not include non-cash investing and financing section) and explain what it tells you about the company. You will use your financial statements as well as the following additional information for the current year: a. Sold $20,000 of old equipment for $9,500 cash providing a gain on sale of equipment. b. Purchased new equipment for $30,000 cash. c. Sold $50,000 plot of land for $49,500 cash providing a loss on sale of land. d. Bonds were issued for $75,000 cash. e. Notes payable payment of $25,000 was made in cash. No new notes were issued this year. f. Common stock was issued for $85,000 cash. g. Dividends of $67,500 were paid in cash the remaining dividends were stock dividends.. 5. Prepare the following ratios for the current year and explain what each means for your company (note: only use formulas as provided in the textbook): a. Current Ratio b. Inventory Turnover ratio c. Days sales in Inventory d. Accounts Receivable Turnover ratio e. Days sales Uncollected ratio 6. Complete the accounting theory questions provided in your Google drive file. What is the name of your Company? (Enter your company here) What is the name of your Company? (Enter your company here) What is your selling price per unit? How many units did you sell this year? Select a selling price between $75 and $150 per unit. Select a number between 10,000 units and 100,000 units. Tell me about your company. What is the product you are selling? (Enter your company here) Adjusted Trial Balance For Years Ended December 31 Current Cash Petty Cash Accounts Receivable Debit 97,000.00 350.00 250,000.00 Last Year Credit Debit Credit 150,000.00 350.00 250,000.00 Allowance for Doubtful Accounts 20,000.00 20,000.00 Notes Receivable (due in 6 months) 2,500.00 Merchandise Inventory 325,000.00 250,000.00 Supplies 5,030.00 5,600.00 Equipment 50,000.00 40,000.00 Accumulated Depreciation - Equip 24,500.00 23,400.00 Building 250,000.00 250,000.00 Accumulated Depreciation - Bldg 36,000.00 30,000.00 Land 100,000.00 150,000.00 Accounts payable 102,300.00 180,000.00 Salaries payable 33,750.00 30,000.00 FICA Taxes payable Federal Income Tax Withheld Payable Bonds payable (due 2030) 10,364.00 41,130.00 9,180.00 10,000.00 80,000.00 Discount on Bonds payable 5,000.00 Discount on Bonds payable Notes Payable (due in 2 years) Common Stock, $2 par Paid in capital in excess of par, Common Stock Retained Earnings Dividends Sales Cost of goods sold Bank service fees Cash Over and Short Credit Card Expense Delivery Expense 5,000.00 50,000.00 75,000.00 80,000.00 70,000.00 600,000.00 525,000.00 123,370.00 123,370.00 70,500.00 4,970.00 50.00 Depreciation Expense - Bldg 6,000.00 Depreciation Expense - Equip 9,800.00 Insurance Expense 12,000.00 Payroll Tax Expense 5,164.00 Supplies Expense 8,750.00 Wage and Salaries Expense Gain on sale of Equipment Loss on sale of Land TOTALS 1,200.00 500.00 1,202,614.00 1,202,614.00 1,095,950.00 1,095,950.00 Sales (Enter your company here) Multi-step Income Statement For Current Year Ended December 31 Sales (Enter your company here) Multi-step Income Statement For Current Year Ended December 31 Income from operations Gain on sale of Equipment 1,200.00 Loss on sale of Land (500.00) Total Other Income/Loss 700.00 NET INCOME Analyze your company's Income Statement. this section has been completed for you (Enter your company here) Statement of Retained Earnings For Current Year Ended December 31 Retained Earnings, Last Year Ending Retained Earnings (Enter your company here) CLASSIFIED Balance Sheet For Years Ended December 31 Current Year Last Year Dollar Change Percent Change Current Assets: Total Current Assets Property, Plant and Equipment (Fixed Assets): Total Property, Plant and Equipment 5 5 Property, Plant and Equipment (Fixed Assets): Total Property, Plant and Equipment TOTAL ASSETS Current Liabilities: 7 Total Current Liabilities 8 9 Long Term Liabilities: 0 1 52 63 Total Long Term Liabilities 64 Total Liabilities 65 166 Paid in capital: 67 768 169 170 Total Paid in Capital Retained Earnings 171 Total Stockholder's Equity 172 173 TOTAL LIABILITIES AND EQUITY 5 5 (Enter your company here) Statement of Cash Flows For Current Year Ended December 31 Cash flows from Operating activities: Net Cash provided (or used) by Operating activities Cash flows from Investing activities: Net Cash provided (or used) by Investing activities Cash flows from Financing activities: Net Cash provided (or used) by Financing activities Net Cash provided (or used) by Investing activities Cash flows from Financing activities: Net Cash provided (or used) by Financing activities ENDING CASH BALANCE, CURRENT YEAR Analyze your company's Statement of Cash Flows Ratio Analysis for Current Year Only (use and show formulas from our chapter and all work): Current Ratio = Inventory Turnover Ratio = Ratio Analysis for Current Year Only (use and show formulas from our chapter and all work): Current Ratio= Inventory Turnover Ratio = Days Sales in Inventory Ratio = Accounts Receivable Turnover = Days Sales Uncollected ratio= Explain what the ratios tell you about your company's performance: 1 What are the 5 different account types we have learned? List and explain each type. 2 Explain what the ratios tell you about your company's performance: What are the 5 different account types we have learned? List and explain each type. Explain the Debit and Credit Theory (do not refer to contra-accounts here). What is a contra-account? Provide 3 specific account examples we learnedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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