Create an income statement and a balance sheet for years X1 through X5. You may use any accounting principles that seem appropriate, providing that they are GAAP/IFRS. Your goal is to maximize the firm’s common stock price at the end of year 5, by making well-informed accounting and financial decisions. You should think of yourself as the CFO (chief financial officer) of this firm. Balance Sheet for the year ending 12/31/X0
Assets
Cash	100,000
Marketable Securities	1,262,000
Accounts Receivable	192,000
Inventory	420,000
Other Assets	150,000
Current Assets	2,124,000
Equipment	2,000,000
Accumulated Depreciation	(200,000)
Fixed Assets	1,800,000
Total Assets	3,924,000
Liabilities and Equity
Accounts Payable	154,000
Other Current Liabilities	50,000
Current Liabilities	204,000
Mortgages	0
Total Liabilities	204,000
Common Stock	100,000
Paid in Capital	3,400,000
Retained Earnings	220,000
Total Equity	3,720,000
Total Liabilities and Equity	3,924,000

Answer rating: 100% (QA)

Income Statement for the years ending 1231X1 through X5 Revenues X1 1500000 X2 2800000 X3 4200000 X4 6000000 X5 8000000 Total Revenues 22500000 Expenses Cost of Goods Sold X1 1200000 X2 2160000 X3 312... View the full answer