. . . . . . . . . Acquired $550,000 by signing a note payable with a local bank Sold 25,000 shares of $22 Common Stock for $1,500,000 Purchased Equipment for $300,000 Purchased Inventory on Account - 25,000 Units at $1.15 per unit Sold 15,000 units at $3.50 on Account COGS for Sales on Account Collect $70,000 on Account Paid $117,250 of Accounts Payable Purchased Inventory on Account - 170,000 Units at $1.50 per unit Sold 175,000 units at $3.50 on Account COGS for Sales on Account Collect $472,500 on Account Paid $218,600 of Accounts Payable Purchased Inventory on Account - 275,000 Units at $1.35 per unit Sold 200,000 units at $3.50 on Account COGS for Sales on Account Collect $735,000 on Account . Paid $494,150 of Accounts Payable Purchased Inventory on Account - 300,000 Units at $1.15 per unit Paid Sales & Marketing Expenses of $30,000 Paid Operating Expenses of $75,708 Record Wages Payable of $40,000 Paid Product Line Research & Development Expenses of $150,000 Paid Advertising Expenses of $87,500 Made the yearly required payment on the note payable. The note carries a 7% interest rate and requires payments of $50,000 plus interest each December 31. Record Yc 1 Depreciation on Equipment Purchased in Year 2 with Salvage Value of $38,000 & useful life of 7 yrs Declared a $10,000 cash dividend for stockholders Paid a $10,000 cash dividend for stockholders . . . . . . . . . . 1. Review the "Accounting Equation for Review" and correct the entries that contain errors. . Background You are a member of the company's executive team. Consider what type of team member you might be based on your declared major and relevant work and course experience. For example, an accounting major may be designated as the CFO, while a marketing major may be designated as the VP of marketing for the firm. Click here for a great article about who makes up an executive team. Remember - you have some flexibility here depending on your educational and professional background/plan of study. If a traditional studentot currently in your planned professional career role, think about the role you would ultimately like to have in your professional career. The accounting equation for review document was provided by a member of accounting team for your review. As part of the executive team of this company, you will review/correct any errors and use the corrected version to construct a full set of financial statements, which will help guide your decision-making process. . . . 2. You will use the CORRECTED accounting equation and templates provided to complete the following financial statements: Income Statement Vertical Balance Sheet Cash Flow Statement Statement on Stockholder's Equity Inventory Tracking Sheet 3. Pro-Forma Flexible budget (using template provided) to include the following assumptions: . . . . Three sales volume levels (provided in spreadsheet) Sales Revenue at a projected sales price of $3.50 per unit at each volume level Cost of Goods Sold (actual Year 1 COGS for Master Budget, use average purchase price per unit of inventory for pro-forma columns) Operating Expenses Fixed Costs pulled from your corrected accounting equation Check Figure/Reflection - Does your calculated Net Income agree to your Accounting equation for your actual sales column? Why or why not? Calculate purchases for desired ending inventory of $35,000, assuming your ending inventory from the accounting equation year 1 is your beginning inventory for budgeting purposes. A breakeven calculation (show your work on the excel file) of how many units you need to sell in order to break even. These items should be clearly identifiable in your submitted file that is uploaded as an answer to one of your Canvas quiz questions: 1. Corrected accounting equation, 2. Complete set of financial statements, & 3. Flexible budget