Prepare DRAFT estimated financial statements for the bank to

Prepare DRAFT estimated financial statements for the bank to consider.
Use the attached excel spreadsheet provided. Please note the figures already contained within the excel spreadsheet are provided as a sample. Therefore, you will be deleting the sample figures provided and deriving and submitting your own figures.

The financial statements are going to be basic and will build on your fundamental knowledge from the first three chapters of the book. You will provide the following:

A basic projected Income Statement showing your expected sales and expenses (less than 1 page in total).

A partial projected Balance Sheet that will list the types of assets you need (less than 1 page in total). You should include the following items [cart, hot dogs, buns, mustard, ketchup] and add up to 5 more of your own choosing.

You can use the assets and expenses that were discussed during the week 3 group brainstorm on Part 1 of the project (Plates, Napkins, Permit, Ketchup, Relish, Mustard, chili, hot dog buns, hot dogs). You may want to refer to the following sites or do research on your own to get some idea of basic pricing.

http://www.viennabeef.com/hot-dog-university

http://amazingribs.com/recipes/hot_dogs_and_sausages/starting_a_hot_dog_stand.html

Solution

ASSETS CURRENT Cash $ 11,552 $ -- Accounts receivable 42,970 50,595 Deposits and prepaid expenses 2,942 2,688 Inventory 159,144 156,657 216,608 209,940 PROPERTY, PLANT AND EQUIPMENT (Note 2) 59,890 76,318 INVESTMENTS -- 45,001 $ 276,498 $ 331,259 LIABILITIES CURRENT Bank overdraft $ -- $ 9,474 Bank loan -- 60,000 Accounts payable and accrued liabilities 82,053 91,343 Long-term debt - current portion 25,200 -- Income tax payable 14,387 -- 121,640 160,817 DUE TO SHAREHOLDER (Note 3) 51,591 231,791 LONG-TERM DEBT (Note 4) 86,100 -- 259,331 392,608 SHAREHOLDER\'S EQUITY STATED CAPITAL (Note 5) 1 1 RETAINED EARNINGS (DEFICIT) 17,166 (61,350) 17,167 (61,349) $ 276,498 $ 331,259 APPROVED The accompanying summary of significant accounting policies and notes are an integral part of these financial statements. XYZ COMPANY LIMITED STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED JUNE 30, 2002 UNAUDITED - See \"Notice to Reader\" 2002 2001 REVENUE $ 1,104,786 $ 1,133,736 COST OF SALES Opening inventory 156,657 146,278 Delivery 1,607 1,249 Purchases 740,994 794,101 941,628 899,258 Closing inventory 159,144 156,657 784,971 740,114 GROSS PROFIT 348,765 364,672 OPERATING EXPENSES (schedule) 339,905 286,817 INCOME FROM OPERATIONS 8,860 77,855 OTHER INCOME (EXPENSES) Loss on disposal of property, plant and equipment -- (387) Gain on sale of investment 16,149 -- Miscellaneous (1,101) 337 (50) 15,048 NET INCOME BEFORE TAX 8,810 92,903 INCOME TAX EXPENSE -- 14,387 NET INCOME 8,810 78,516 (DEFICIT) - Beginning of Year (54,160) (61,350) DIVIDENDS -- (16,000) RETAINED EARNINGS (DEFICIT) - End of Year $ 17,166 $ (61,350) The accompanying summary of significant accounting policies and notes are an integral part of these financial state