Youve just started a business that makes Ultimate Cubes. The cost of goods sold for each cube is $13 and you sell them for $21 each. You start the company on December 31st, 2023. At that time, you have enough inventory to make 700 cubes, you have $8,000 of cash on hand. You begin by making them in your garage. You purchased equipment used to make the cubes for $40,000 which have no salvage value and will depreciate evenly over 5 years. To finance your assets, you take out a $35,000 loan which will be due on December 31st, 2026. The entire principal value will be due on that date, and you will need to make an interest payment of 7% of the principal value on December 31st, 2024, on December 31st, 2025, and pay off the principal plus the interest payment on December 31st, 2026. The portion of assets not financed with debt will come from an equity investment from you.

1st year activities During the 1st year of business, you sold 3,000 cubes. At the end of the year, you have enough inventory on hand to build 850 cubes. You began purchasing on credit near the end of the year and have $4,000 in accounts payable at the end of the year. You allowed one customer to purchase on credit and have accounts receivable of $2,000 at the end of the year. You paid yourself a salary of $6,000 during the year. The companys income tax rate is 15%.

2nd year activities The production of the cubes has overwhelmed your garage and has taken over a portion of your house. To maintain familial harmony, you rent space at $800 per month to build your cubes. This will begin on January 1st, 2025. You also purchase $20,000 in equipment on January 1st, 2025, which will also be evenly depreciation over the next five years with no salvage value. You sold 6,500 units during the year. You once again paid yourself a $6,000 salary and took $10,000 in dividends during the year. At the end of the year, you had $2,500 in accounts receivable and $4,400 in accounts payable. You have enough inventory on hand to make 1,000 cubes. You owe your landlord $800 for the previous months rent (this is an accrued expense). The companys income tax rate is 15%.

3rd year activities During the third year, your sales increased to 12,000 units. You increased your pay to $40,000 per year and the company owed you $20,000 of that at the end of the year. You have enough inventory to produce 1,200 units at the end of the year. Once again, you owe your landlord $800 at the end of the year and your rent amount remained at $800 per month. Accounts Receivable were $5,000 at the end of the year and accounts payable were $6,000. You pay off the $35,000 loan on December 30th, 2026. The companys income tax rate is 15%. You pay yourself $30,000 in dividends during the year.

So I need a balance sheet, an income statement, and a statement of cash flows. please show your work so I understand it. Thanks for everything. it is three years. 2024,2025,and 2026. however the balance sheet also has the year 2023.

Balance sheet: 2023,2024,2025,2026

current assets

cash

accounts receivable

inventory

total current assets

fixed assets

gross fixed assets

accumulated depreciation

net fixed assets

total assets

current liabilities

accounts payable

accrued expenses

notes payable

total current liabilities

long term liabilities

common equity

retained earnings

total liabilities and equity

Income statement: 2024, 2025,2026

net sales

COGS

gross profit

selling, general, and admin expenses

rent expense

depreciation expense

earnings before interest and taxes

interest expense

earnings before taxes

income tax

net income

dividends paid

additional to retained earnings

Statement of cash flows: 2024, 2025, 2026

Net income

add: depreciation expense

change in accounts receivable

change in inventory

change in accounts payable

change in accrued expenses

cash flows from operations

cash from the sale of investments

investment in fixed assets

cash flow from investing activities

cash from the issuance (payments) of notes payable

cash from the issuance (payment) of long term debt

cash from the issuance (repurchase) of equity

dividends paid

cash flows from financing activities

net cash flow

beginning cash

change in cash

ending cash