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Construct in good form an income statement & balance sheet

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Bikes are sold for $485 each, the cost to produce the bikes is $335 each. Depreciation expenses run $2,000 per year. Utilities are $13,000 per year. Insurance is $2,475 per year. Gas is $1,020 per year. Phone and internet is $3,060 per year. Rent is $24,000 per year. Vehicle license and other fees are $795 per year. There is a budget for tools for $900 per year. 597 bikes are sold. Assets are: Parts $8,955, tools $4,600, delivery/service truck $22,000, office equipment display racks computers and phones are $17,000 with an inventory of 80 completed bikes. The company has a five-year loan. The loan amount is $55,000 with an interest rate of 6.5%. Accumulated depreciation in the amount of $15,000. Operating cash is $10,000 with $30,000 In savings. Tax rate is 24%. Accounts receivable are $4,500 and accounts payable is $2,000. This is a sole proprietorship.

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Solution Summary

Using the bike example, the Solution is constructed in excel so you can click in cells and see where amounts were calculated.

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