Data Section Sales are expected to increase by 5% every month. 150,000.00 205,000.00 10 year depreciation, bought on May 31, 2021, Work Ethics Gen. Mdse uses the Declining Balance Method 100,000.00 20% are acquired on May 31, 2021 Unit Sales April May June 15,000 The total sales for the Fiscal Year 2022 is 15% higher than the total sales for 2021. 10,000 16,000 July 14,000 August 15,000 Fixed Assets Cost September 12,000 Land collections from customers: Building Office Equipment Cash $8,000 Accounts receivable 107,800 52,800 530,000 $698,600 Machinery $74,800 Merchandise inventory Fixed assets (net) Total assets Accounts payable (merchandise) Loans Payable Owner's equity Total liabilities & equity 20% are acquired on August 31, 2021 20% are acquired on October 31, 2021 20% are acquired on December 31, 2021 20% are acquired on March 31, 2021 Use the Straight Line Method (5 years) 75,000.00 5 year $400,000 5 year loan, 12% interest taken out on May 31, 2021, paid yearly every June 1, Face Amount. 223,800 Discount on Notes Payable 77,012.05 Deducted from the Accounts Receivable Balance. $698,600 Bad Debt Expense is 3% of sales Other Data Average selling price Average purchase cost per unit $250 $90 Desired ending inventory (% of next month's unit sales) 60% Collections from customers: Collected in month of sale 20% Collected in month after sale 60% Collected two months after sale 20% Projected cash payments: Variable expenses 30% of sales Fixed expenses (per month) $10,000 Depreciation ?? INSTRUCTIONS: Prepare a 2-year comparative financial statements including the notes to FS for the Fiscal Year May 2021 and 2022 for the data provided above. All relevant assumptions for 2022 are also applicable to 2021. :)
Data Section Sales are expected to increase by 5% every month. 150,000.00 205,000.00 10 year depreciation, bought on May 31, 2021, Work Ethics Gen. Mdse uses the Declining Balance Method 100,000.00 20% are acquired on May 31, 2021 Unit Sales April May June 15,000 The total sales for the Fiscal Year 2022 is 15% higher than the total sales for 2021. 10,000 16,000 July 14,000 August 15,000 Fixed Assets Cost September 12,000 Land collections from customers: Building Office Equipment Cash $8,000 Accounts receivable 107,800 52,800 530,000 $698,600 Machinery $74,800 Merchandise inventory Fixed assets (net) Total assets Accounts payable (merchandise) Loans Payable Owner's equity Total liabilities & equity 20% are acquired on August 31, 2021 20% are acquired on October 31, 2021 20% are acquired on December 31, 2021 20% are acquired on March 31, 2021 Use the Straight Line Method (5 years) 75,000.00 5 year $400,000 5 year loan, 12% interest taken out on May 31, 2021, paid yearly every June 1, Face Amount. 223,800 Discount on Notes Payable 77,012.05 Deducted from the Accounts Receivable Balance. $698,600 Bad Debt Expense is 3% of sales Other Data Average selling price Average purchase cost per unit $250 $90 Desired ending inventory (% of next month's unit sales) 60% Collections from customers: Collected in month of sale 20% Collected in month after sale 60% Collected two months after sale 20% Projected cash payments: Variable expenses 30% of sales Fixed expenses (per month) $10,000 Depreciation ?? INSTRUCTIONS: Prepare a 2-year comparative financial statements including the notes to FS for the Fiscal Year May 2021 and 2022 for the data provided above. All relevant assumptions for 2022 are also applicable to 2021. :)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Data Section - PROVIDED BY THE CLIENT
Unit Sales
Sales are expected to increase by 5% every month.
The total sales for the Fiscal Year 2022 is 15% higher than the total sales for 2021.
April
May
15,000
10,000
June
16,000
July
August
September
14,000
15,000
Fixed Assets
Cost
12,000
Land
150,000.00
Building
205,000.00 10 year depreciation, bought on May 31, 2021, Work Ethics Gen. Mdse uses the Declining Balance Method
collections from customers:
Office Equipment
100,000.00 20% are acquired on May 31, 2021
Cash
$8.000
20% are acquired on August 31, 2021
Accounts receivable
107,800
20% are acquired on October 31, 2021
Merchandise inventory
52,800
20% are acquired on December 31, 2021
530,000
$698,600
Fixed assets (net)
20% are acquired on March 31, 2021
Total assets
Use the Straight Line Method (5 years)
Machinery
75.000.00 5 year
Accounts payable (merchandise)
Loans Payable
Owner's equity
Total liabilities & equity
$74,800
$400,000 5 year loan, 12% interest taken out on May 31, 2021, paid yearly every June 1, Face Amount.
223,800 Discount on Notes Payable
$698,600 Bad Debt Expense is 3% of sales
77,012.05 Deducted from the Accounts Receivable Balance.
Other Data
Average selling price
Average purchase cost per unit
Desired ending inventory
(% of next month's unit sales)
Collections from customers:
$250
$90
60%
Collected in month of sale
20%
Collected in month after sale
60%
Collected two months after sale
20%
Projected cash payments:
Variable expenses
30% of sales
$10,000
Fixed expenses (per month)
Depreciation
??
INSTRUCTIONS:
Prepare a 2-year comparative financial statements including the notes to FS for the Fiscal Year May 2021 and 2022 for the data provided above.
All relevant assumptions for 2022 are also applicable to 2021. :)
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