Description
use the provided document information to create a balance sheet.
You need to project sales and all costs per the fairs and report your results.
You will need to prepare:
- balance sheet
- there should be enough data to allow someone to look at this and decide to invest in your entity.
- This will cover June (San Diego) July (Orange County) and August (Los Angeles) – fair times.
You will have $250,000 as seed money for your operation for budget purposes.
CONCLUSIONS, SUCCESSFUL YEAR? DO THE SAME THING NEXT YEAR? WHAT CHANGES TO MAKE?
ANY REPORTS ARE TO BE WORD TIME NEW ROMAN 12 FONT
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Explanation & Answer
Attached. Please let me know if you have any questions or need revisions.
The Income Statement for XYZ for the Months June, July, and
August.
Revenue
Gross sales
(Less sales returns and allowances)
Net Sales
June (SN)
July (OC)
$156.000,00
$13,00
$156.000,00
$22,00
$156.013,00
$156.022,00
$0,00
$32.965,40
$32.965,40
$870,00
$33.835,40
$870,00
$32.965,40
$33.835,40
$458,00
$34.293,40
$122.177,60
$121.728,60
$36.000,00
$113,00
$234,00
$111,00
$14.220,00
$214,00
$22,00
$50.914,00
$36.000,00
$210,00
$138,00
$152,00
$12.870,00
$231,00
$36,00
$49.637,00
$71.263,60
$72.091,60
($14.252,72)
($14.418,32)
$57.010,88
$57.673,28
Cost of Goods Sold
Beginning inventory
Goods purchased linked to labor
Total Goods Available
(Less ending inventory)
Cost of Goods Sold
Gross Profit (Loss)
[42]
Expenses
Fixed Costs
Commissions
Insurance
Maintenance and repairs
Salaries and wages
Travel
Other
Total Operating Expenses
Operating Income (Loss)
(Less income tax expense)
Net Income
20%
Income tax
Net Profit Margin (Net income/revenue)
Gross Profit Margin (Operating income/revenues)
36,54%
45,68%
36,96%
46,21%
une, July, and
Aug (LA)
$156.000,00
$156.000,00
$458,00
$32.965,40
$33.423,40
$374,00
$33.797,40
$122.202,60
$36.000,00
$122,00
$193,00
$174,00
$9.990,00
$237,00
$67,00
$46.783,00
$75.419,60
($15.083,92)
$60.335,68
38,68%
48,35%
Percentage
Change
The Balance Sheet of XYZ Restaurant as 31/08/2020
Assets
2020
2021-Projected
Total current assets
$309.392,08
$374,00
$3.191,00
$312.957,08
$311.719,86
$1.312,04
$2.712,35
$315.744,25
Total fixed assets
$25.145,60
$0,00
$25.145,60
$25.796,83
($515,94)
$25.280,89
$338.102,68
$341.025,14
$6.020,00
$1.213,00
$7.233,00
$6.381,20
$1.285,78
$7.666,98
$5.000,00
$3.000,00
$4.045,00
$2.800,00
$8.000,00
$6.845,00
$250.000,00
$12.534,00
$60.335,68
$322.869,68
$250.000,00
$13.160,70
$63.352,46
$326.513,16
$338.102,68
$341.025,14
Current Assets
Cash & Bank
Inventory
Prepaid expenses
15%
Fixed (Long-Term) Assets
Property and equipment
(Less accumulated depreciation)
Total Assets
[42]
2%
Liabilities and Owner's Equity
Current Liabilities
Accounts payable
Outstanding Expenses
Total current liabilities
6%
6%
Long-Term Liabilities
Long-term debt
Deferred income tax
Other
Total long-term liabilities
Owner's Equity
Owner's Equity
Retained earnings
Net Income
Total owner's equity
5%
5%
s
Total Liabilities and Owner's Equity
{42}
Common Financial Ratios
Debt Ratio (Total Liabilities / Total Assets)
Current Ratio (Current Assets / Current Liabilities)
Assets-to-Equity Ratio (Total Assets / Owner's Equity)
Debt-to-Equity Ratio (Total Liabilities / Owner's Equity)
0,05
43,27
1,05
0,05
0,04
41,18
1,04
0,04
1
Balance sheet
Name
Institutional affiliations
2
Balance sheet
Balance Sheet: Assumptions
1. Revenue from the income statement forms the Cash balance.
2. No accounts receivable because every item will be sold on a cash basis.
3. Part of seed money will contribute to Cash balance
4. The balance under the cost of goods sold will contribute to Inventory balance.
5. Part of the operating expense (income statement) will affect the prepaid expense and
accounts payable (balance sheet).
6. Net income (retained earnings) will affect equity (balance sheet).
7. The balance sheet will witness a 0.86% increase.
Justification for the percentage increase in the subsequent period.
The balance sheet shows the 2020 column (current year estimations) and the subsequent year
2021. These are estimations of how the business will perform. It is important to note that the
entity will record increased income in the 2021 fairs because of the enhanced understanding
of the business environment. The following assumptions hold:
1. Prepaid expenses will be decreased by 15%. A deliberate reduction is designed to
increase the amount of cash flow in the business. Prepayments will be limited to
insurance and rent.
2. Depreciation. Considering the equipment’s utility, depreciation is acco...
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