Create an income statement and a balance sheet for years Y1 through Y5. You must use the accrual basis of accounting and apply GAAP accounting principles. Include the following five items on a separate sheet in the same EXCEL worksheet file: balance sheet; income statement; calculation of cost of goods sold, purchases, and ending inventory; calculation of ending cash balance; cash collections of accounts receivable and cash payments of other current liabilities.
Please see the attached documents for the full description of the assignment.
Attached is a dynamic Excel file with the suggested solution. You ...
You will see all formulas and relevant links inside the calculated fields. If you change the figures in the assumptions or/and in the statements of Y0, all subsequent years' amounts will change automatically.