It has been one year since Mr$.$ Ray set up his company $$Table & Chair$$ which produces furniture. The company owns a building worth CAD $12,000,$ and equipment purchased for CAD $48,000.$ The building and equipment were purchased one year ago and are depreciated over a period of $10$ years. Now, accumulated depreciation totals CAD $6,000$:

$(12,000/$l$0$years $=1,200)+(48,000/10$ years $=4,800)=$ CAD $6,000$ per year

The equipment was purchased with a loan $($taken out for four years$).$ Currently, $25\%$ of the loan has been repaid and monthly principal payments total CAD $1,000.$ Interest payments are $6,300$ for this year.

The enterprise works to order, and its monthly revenue is CAD $28,000.$ The cost of goods sold $($materials$)$ comprise $70\%$ of the sales price, moreover the goods are sold in the month in which they are made. $12$ people work in the enterprise with an average salary of CAD $200$ per month. Utilities cost CAD $2,850$ per quarter and other expenses CAD $345$ per month. Taxes are paid on profits at the rate of $25\%.$

One year ago, the company bought the building $($market value of CAD $12,000)$ and injected CAD $20,000$ cash for working capital to start the business.

On the day of the site visit there were raw materials in the warehouse with a purchase price of CAD$25,000$ and finished goods for a value of CAD $30,000$ based on their sales price. Raw materials are bought on credit and on the day of analysis $80\%$ of the stocks of raw materials have not been paid for.

Assignment

Compile a balance sheet and an income statement based on the data provided above using MS Excel. Please prepare the Balance Sheet as of today and the Income Statement for the last $12$ months.