QUESTION #2 - Looking for expert tutor in Corporate Accounting (MBA650), who can help with detailed answers/explanations to the scenario listed below.

Linwood and Jean Sessoms have held jobs in a variety of businesses since they have been together. Linwood has been a sales representative manager for a pharmaceutical company. Jean has been a legal assistant at a law firm. They both wanted to always own their own business. They have decided to open a jewelry store here in Suffolk, Virginia. They will call the jewelry store Heavenly Rocks Enterprises (HRE). They have been saving up for years and want to branch out on their own now. Here is financial information on the jewelry store as they want your help because you just finished your MBA. On January 1, HRE issued no par common stock to the Sessoms for $450,000. Early in January, Jeff signed a lease and secured a commercial space for $20,000 for HRE. Then the business purchased store fixtures for $53,000. Then the business purchased a vast amount of different types of jewelry. They bought watches, stones, necklaces, bracelets, etc. The total inventory costs was $340,000. Sales were pretty good so a few months later the business purchased additional inventory on account of $239,000. Before the year ended HRE paid $139,000 of this accounts payable. During the year, HRE sold 2,400 pieces of various jewelry and the average sale was $275. Before the year ended the company collected on 85% of this sales amount. The costs of goods sold for the year totaled $250,000 and the year-end inventory amount was $329,000. The HRE employed three employees and did not pay any overtime throughout the year. The total payroll for the year was $96,000 but HRE still owes the employees $3,000 at year end. At the end of the year, HRE has paid in income tax of $17,000 so there is no reason to have an income tax payable account. The HRE believed they had a rewarding year as they started their own jewelry business. The HRE sacrificed a lot during this first year but did need some money to live on so they took dividends of $44,000 from HRE. The HRE do not know that much about accounting so they asked a friend for advice on how to account for the use of the store fixtures. They want the store fixtures depreciated over 5 years using the straight-line depreciation method with zero residual value.

Please answer the following questions:

1. What is the purpose of the statement of cash flows?

2. Prepare the income statement for the year ended.

3. Prepare the statement of retained earnings. 4. Prepare the balance sheet for the company at year end.

5. Prepare the statement of cash flows at year end using the indirect method.

6. Analyze the three financial statements from your answer and assess the company's performance. You must use ratios and the cash flows statement to back up your answer. 7. Explain the purpose of the statement of cash flows (#1) and also share your analysis of the business (#6). Also, should they continue the jewelry business or go back to their other career jobs? 8. Ethics question-You are part of management of a company that is having a tough year. The company's Board of Directors has decided the company needs a loan. Management knows that the bank will scrutinize the cash flows statement especially the operating activities. Management has suggested moving some outstanding accounts receivables of slow paying clients from current assets to long term assets. This move will increase the net cash provided by operations and possibly help the company get the loan. Are the actions of management ethical or unethical?