Hinson Co, LLC produces the now familiar Hooked on Economics for preschoolers. It sells online and...

 

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Hinson Co, LLC produces the now familiar Hooked on Economics for preschoolers. It sells online and out of a small store front. Last year it made $30,000 on sales of $150,000. Currently, the only investment is an original $100,000 investment by its founder. Below, produce each of the financial statements. The numbers and categories to include are for you to decide constrained by the preceding numbers. You'll be evaluated on form and that the numbers "add up". Q1 - Produce a hypothetical Balance Sheet for HinsonCo. You choose the relevant items to include and the corresponding numbers. But there are three constraints. First, your Owners Equity must equal $100,000. Second, you should have four Assets (including Cash) that might be relevant to Hinson Co and two liabilities. And finally, your Balance Sheet had better be organized correctly (and balance). Q2 - Produce a hypothetical Income Statement for HinsonCo. Again, you choose the relevant items to include and the corresponding numbers. Again, the included items should be relevant to HinsonCo. Revenue must be $150,000 and Net Income must equal $30,000. Q3 - Produce a hypothetical Statement of Cash Flow for HinsonCo. Your statement must be based on your Balance Sheet and Income Statements in questions 1 and 2. Your statement should also include at least one entry for each of the three broad categories. Hinson Co, LLC produces the now familiar Hooked on Economics for preschoolers. It sells online and out of a small store front. Last year it made $30,000 on sales of $150,000. Currently, the only investment is an original $100,000 investment by its founder. Below, produce each of the financial statements. The numbers and categories to include are for you to decide constrained by the preceding numbers. You'll be evaluated on form and that the numbers "add up". Q1 - Produce a hypothetical Balance Sheet for HinsonCo. You choose the relevant items to include and the corresponding numbers. But there are three constraints. First, your Owners Equity must equal $100,000. Second, you should have four Assets (including Cash) that might be relevant to Hinson Co and two liabilities. And finally, your Balance Sheet had better be organized correctly (and balance). Q2 - Produce a hypothetical Income Statement for HinsonCo. Again, you choose the relevant items to include and the corresponding numbers. Again, the included items should be relevant to HinsonCo. Revenue must be $150,000 and Net Income must equal $30,000. Q3 - Produce a hypothetical Statement of Cash Flow for HinsonCo. Your statement must be based on your Balance Sheet and Income Statements in questions 1 and 2. Your statement should also include at least one entry for each of the three broad categories.

Answer rating: 100% (QA)

1 HinsonCo Balance Sheet Assets Cash 30000 Inventory 40000 Accounts Receivable 20000 Prepaid Exp... View the full answer