Acct $311-$ Case $1-100$ Points

Assignment $-$ Write a formal report to the Chief Executive Officer responding to the requested items $($see below$).$ The report must be submitted in a WORD document $($one file only$).$

Note $1$: Use of EXCEL will be required to prepare the financial statements and estimate future cash balance. You will need to copy$/$paste in good form the EXCEL documents into the WORD document.

Note $2$: The CEO is not an accountant but is well versed in business. Keep this perspective in mind as you prepare your report.

Note $3$: Assignment time should not exceed $4$ hours.

Note $4$: Approach and format of your report is based on your prior experience and judgement. Case $1$ grading will consider the minimal instructor direction being provided.

Background: After graduating from Metropolitan State University, you were immediately hired by a first$-$year start$-$up company, RiverEdge Inc. RiverEdge Inc. had a very successful first year of operation with sales revenue of nearly $$12$ million. The company sells DNR approved fencing that can be placed along both river and lake shorelines. Initially, the majority shareholder and founder $($now RiverEdge Inc.$\text{'}$s Chief Executive Officer$),$ had not planned on hiring an accountant.

A local bookkeeping company has completed the basic accounting and prepared the December $31,2023,$ adjusted trial balance $($see page $2).$

The Chief Executive Officer $($CEO$)$ reviewed the adjusted trial balance and was in disbelief that the cash balance was only $$150,000.$ When the CEO started asking bookkeeper questions it became clear that the company needed to hire a $4-$year degreed accountant. Thus, on January $15,2024,$ you were hired to become the first accountant for RiverEdge Inc.

First Day: Your first day on the job was February $10,2024,$ you negotiated this start date so you could provide your current employer an appropriate two$-$week notice and still have a week to spend with family and friends.

At $8$:$00$ a$.$m$.$ on February $10,$ you meet with the CEO. The CEO was direct and to the point. The CEO requested the following:

Income Statement $-$ For the Year Ended December $31,2023$

Retained Earnings Statement $-$ For the Year Ended December $31,2023$

Balance Sheet $-$ As of December $31,2023$

Statement of Cash Flows $-$ For the Year Ended December $31,2023$

In addition, the CEO wanted you to estimate the year$-$ending December $31,2024,$ cash balance assuming $2024$ sales of $$15$ million $($including an explanation of your assumptions, etc.$).$ The CEO stated that the cash projection for $12/31/2024$ should take one hour.

Student Note: Do not spend more than one hour preparing the cash projection.