Financial Statements Separating facts from forecasts in financial statements

Financial statements separating facts from forecasts

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Financial Statements Separating facts from forecasts in financial statements has many potential benefits. Such intertemporal financial statements would indicate to investors which numbers are more reliable and which less reliable, thus providing them with decision-useful information. Another role of
accounting is in facilitating the stewardship relationship between managers and owners.” (Glover, 2005) The profits and losses were significant to us when we started this simulation, especially considering the damages that the company had experienced the previous year. There was a credit floor of 325,000 that was not used for a couple of years. When the credit was used, it was used for the first time 47,000 was used for operational usage, and it went up over 300,000, which makes sense since there will be more credit needed as the company and the market have substantial growth. Debt to income ratio is essential for business as well so do not use or go into any liability in the first couple of years was a good thing, but it can also be looked upon as being a negative as the company is failing it can be seen as a necessity to go into debt in order to make sure the company stays afloat. It can also be seen as a tool. Credit Line [$] Q1'19A Q2'19A Q3'19A Q4'19A Q1'20A Q2'20A Q Credit Floor $325,000.00 $325,000.00 $325,000.00 $325,000.00 $325,000.00 $325,000.00 $325 Total Collateral $153,633.86 $157,834.00 $189,028.33 $199,650.02 $242,913.98 $272,523.29 $285 = Collateral Value $100,000.00 $100,000.00 $100,000.00 $100,000.00 $100,000.00 $100,000.00 $100 + Receivable Advance $53,172.00 $57,834.00 $82,200.00 $86,856.00 $127,042.80 $153,745.20 $167 + Finished Goods Adv. $461.86 $0.00 $6,828.33 $12,794.02 $15,871.18 $18,778.09 $18 Credit Line $325,000.00 $325,000.00 $325,000.00 $325,000.00 $325,000.00 $325,000.00 $325 Current Debt $0.00 $0.00 $0.00 $0.00 $47,835.18 $153,225.50 $246
Credit Line [$] Q1'19A Q2'19A Q3'19A Q4'19A Q1'20A Q2'20A Q Credit Line Status OK OK OK OK OK OK Profits and Loss Total Sales $265,860.00$287,910.00$308,700.00$325,710.00$340,990.00$360,490.00$397,860.00$45 5,950.00$639,600.00$868,800.00$1,139,400.00$1,503,000.00- Total COGS $129,937.31$135,168.89$146,749.29$136,946.30$146,402.48$168,478.90$185,435.06$1 87,164.21$305,160.38$351,986.55$381,814.39$495,900.66Gross Margin$135,922.69$152,741.11$161,950.71$188,763.70$194,587.52$192,011.10$212,424.94$2 68,785.79$334,439.62$516,813.45$757,585.61$1,007,099.34- Total Base Costs $204,265.16$172,591.33$189,725.67$215,386.74$228,383.32$272,979.72$298,731.64$33 1,767.14$343,999.45$438,335.96$435,374.88$519,879.07Operating Margin (OM)($68,342.47) ($19,850.22)($27,774.96)($26,623.04)($33,795.80)($80,968.62)($86,306.70)($62,981.35) ($9,559.83)$78,477.49$322,210.73$487,220.27- Interest Expense $0.00$0.00$0.00$0.00$0.00$1,793.82$5,745.96$9,228.52$14,335.95$12,517.80$11,44 6.54$10,162.25Pre-Tax Net Income($68,342.47)($19,850.22)($27,774.96)($26,623.04) ($33,795.80)($82,762.44)($92,052.65)($72,209.86) ($23,895.78)$65,959.70$310,764.19$477,058.02- Taxes ($34,171.23)($9,925.11)($13,887.48) ($13,311.52)($16,897.90)($41,381.22)($46,026.33)($36,104.93) ($11,947.89)$32,979.85$155,382.10$238,529.01Net Income($34,171.23)($9,925.11) ($13,887.48)($13,311.52)($16,897.90)($41,381.22)($46,026.33)($36,104.93) ($11,947.89)$32,979.85$155,382.10$238,529.01
Balance Sheet [$] Q1'19A Q2'19A Q3'19A Q4'19A Q1'20A Q2'20A Q Total Assets $270,828.77 $260,903.66 $247,016.18 $233,704.66 $264,641.94 $328,651.03 $375 = Cash $180,669.22 $163,997.06 $87,082.86 $46,297.94 $0.00 $0.00 + Receivables $88,620.00 $96,390.00 $137,000.00 $144,760.00 $211,738.00 $256,242.00 $279 + Raw Material $0.00 $516.60 $172.20 $0.00 $0.00 $9,815.40 $35 + Finished Goods $1,539.54 $0.00 $22,761.11 $42,646.72 $52,903.94 $62,593.63 $60 + Net PP&E $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total Liabilities & Equity $270,828.77 $260,903.66 $247,016.18 $233,704.66 $264,641.94 $328,651.03 $375 = Liabilities $0.00 $0.00 $0.00 $0.00 $47,835.18 $153,225.50 $246 + Equity $270,828.77 $260,903.66 $247,016.18 $233,704.66 $216,806.76 $175,425.54 $129 Balance Sheet [$] Q1'19A Q2'19A Q3'19A Q4'19A Q1'20A Q2'20A Q3'20A Q4'20A Q1'2 Total Assets 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100 = Cash 66.7% 62.9% 35.3% 19.8% 0.0% 0.0% 0.0% 0.0% 0 + Receivables 32.7% 36.9% 55.5% 61.9% 80.0% 78.0% 74.3% 68.6% 79 + Raw Material 0.0% 0.2% 0.1% 0.0% 0.0% 3.0% 9.5% 4.5% 13 + Finished Good 0.6% 0.0% 9.2% 18.2% 20.0% 19.0% 16.2% 26.9% 6
Balance Sheet [$] Q1'19A Q2'19A Q3'19A Q4'19A Q1'20A Q2'20A Q3'20A Q4'20A Q1'2 + Net PP&E 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0 Total Liabilities & Equity 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100 = Liabilities 0.0% 0.0% 0.0% 0.0% 18.1% 46.6% 65.5% 80.4% 80 + Equity 100.0% 100.0% 100.0% 100.0% 81.9% 53.4% 34.5% 19.6% 19 Cash Flow [$] Q1'19A Q2'19A Q3'19A Q4'19A Q1'20A Cash Provided/(Used) - Operating Activities ($124,330.78) ($16,672.17) ($76,914.19) ($40,784.92) ($94,133.12) ( Cash Provided/(Used) - Investing Activities $0.00 $0.00 $0.00 $0.00 $0.00 Cash Provided/(Used) - Financing Activities $305,000.00 $0.00 $0.00 $0.00 $47,835.18 Total Cash Flow $180,669.22 ($16,672.17) ($76,914.19) ($40,784.92) ($46,297.94) + Beginning Cash $0.00 $180,669.22 $163,997.06 $87,082.86 $46,297.94 Ending Cash $180,669.22 $163,997.06 $87,082.86 $46,297.94 $0.00 Ratios Variable Costs ($) / Sales ($) 48.9% 46.9% 47.5% 42.0% 42.9% 46.7% Materials ($) / Sales ($) 13.7% 13.7% 13.7% 13.7% 14.1% 14.6%
Labor ($) / Sales ($) 35.2% 33.3% 33.9% 28.4% 28.8% 32.1% Base Costs ($) / Sales ($) 76.8% 59.9% 61.5% 66.1% 67.0% 75.7% Gross Margin (%) 51.1% 53.1% 52.5% 58.0% 57.1% 53.3%

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