1.Produce a balance sheet for a company that distinguishes between current and non- current assets and liabilities.
2.Create a balance sheet from a trial balance.
3.Create a comparison of net income based on different methods of inventory accounting.
4.Analyze a statement of cash flows and show where each line item can be found or
calculated from the other financial statements.
5.Prepare a full analysis of key financial ratios for a company and state conclusions about
the financial strength of the company compared to industry ratios.
PROJECT SUBMISSION PLAN
Project Part
Description/Requirements of Project Part
Evaluation Criteria
Title: Creating a Balance Sheet and Evaluating Inventory You will be provided with financial information about a fictional company. You will have to determine what information is relevant for Project Parts 1 and 2.
Task 1: Create a balance sheet from a trial balance for a given scenario. Make sure you classify the accounts appropriately as current or non-current.
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Create a Balance Sheet from the trial balance:
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Debits
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Credits
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Classification
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Cash
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300,000.00
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Current asset
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Sales
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(10,000,000.00)
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Income statement
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Cost of Goods Sold
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7,000,000.00
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Income statement
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Selling Expenses
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500,000.00
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Income statement
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Other income
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(50,000.00)
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Income statement
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Administrative expenses
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350,000.00
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Income statement
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Interest Expenses
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12,500.00
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Income statement
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Land
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300,000.00
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non-current asset
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Building
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2,000,000.00
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non-current asset
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Long Term bond payable
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(550,000.00)
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non-current liability
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Accrued Liabilities
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(50,000.00)
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current- liability
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Accumulated Depreciation Buildings
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(250,000.00)
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non-current asset
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Equipment
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750,000.00
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non-current asset
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Receivables
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100,000.00
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current asset
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Allowance for doubtful accounts
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(7,500.00)
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current asset
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Accumulated depreciation equipment
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(125,000.00)
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non-current asset
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Common Stock
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(200,000.00)
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equity
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Payables
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(115,000.00)
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current Liability
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Inventories
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200,000.00
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current asset
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Prepaid Expenses
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50,000.00
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current asset
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Retained Earnings
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(215,000.00)
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equity
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11,562,500.00
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(11,562,500.00)
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Assets
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Equity and Liabilities
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Current Assets
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Current Liabilities
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Total Current Assets
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-
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Total Current Liabilities
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-
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Total long term Liabilities
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-
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Total property plant and equipment
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-
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Total Equity
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-
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Total Assets
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-
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Total Equity and liabilities
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-
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