Answer:
Income:
sales revenue 1,440,000
COGS 870,000
Income 570,000
Balance Sheet:
Cash 1,873,200.00
Inventory 270,000.00
Total Assets 2,143,200.00
Liabilities:
Accounts payable 1,140,000.00
Sales tax payable 43,200.00
Total Liab 1,183,200.00
Equity:
Common Stock 390,000
RE 570,000
Total 960,000
Total Liab + Equity 2,143,200.00
Cash flow
from operating activities
from sale 1,483,200
from financing
issuance of common stock 390,000
Total cash 1,873,200.00
Q: prepare financial statement
Explanation:
First we do the net income
which is the sales revenue less the COGS
the sales tax is not revenue We are witholding in favor of the gevernment.
Then, we do the cash flow statement.
Last, the balance sheet.
inventory will be the purhcase less the used in the sale
the net income will be posted under retained earnings
the cash balance should bethe one calcualted on the cash flwo statement.
