Assignment 2
Student Number:
994633928
In submitting this work for grading, I confirm:
That the work is original, and due credit is given to others where appropriate
Acceptance and acknowledgement that assignments found to be plagiarized in any way will be subject to sanctions under the University’s Code of Behaviour on Academic Matters.
Please pay attention to the course outline for specific formatting requirements set by instructors.
Assignment Title:
Assignment #2: ALLGOMOTIVE INC (AGM)
Course Code:
RSM 1320
Course Title:
Financial Accounting
Section #:
1
2
3
4
5
AM
PM
Assignments are to be submitted using student ID numbers only; do not include your name. Please note that assignments that include names or that do not have the box below checked will not be graded.
Please check the box and record your student number below to indicate that you have read and abide by the statements above.
Professor Name:
Dragon Stojanovic
☒
994633928
1.) Create the income statements for the fiscal 2015 pro-forma [NOTE: please use the same format for the income statement as in Exhibit 2]. (13 points)
AGM Income Statement
For fiscal year ending October 31st
2015
2014
Sales
8,215,000 6,497,500
COGS
5,159,850 4,721,900
Gross Profit 3,055,150 1,775,600
Operating Expenses:
Rent 438,500 288,500
Insurance
173,000 183,000
Depreciation Expense 146,625 57,500
(57,500)
Interest Expense 460,000 138,000
Salaries Expense 989,400 694,600
Operating Expenses: 2,207,525 1,361,600
Gains or Losses (190,000) -
Income before taxes 657,625 414,000
Income taxes (24%) 157,830 99,360
Net Income 499,795 314,640
2.) Create the statement of cash flows for the fiscal 2015 pro-forma using the indirect method. (22 points)
CDX Statement of Cash Flows
REFERENCE
CFO:
Net income $499,795
Reconciling items
Loss on sale of equipment $190,000 (6) Depreciation $146,625
Increase in A/R
994633928
In submitting this work for grading, I confirm:
That the work is original, and due credit is given to others where appropriate
Acceptance and acknowledgement that assignments found to be plagiarized in any way will be subject to sanctions under the University’s Code of Behaviour on Academic Matters.
Please pay attention to the course outline for specific formatting requirements set by instructors.
Assignment Title:
Assignment #2: ALLGOMOTIVE INC (AGM)
Course Code:
RSM 1320
Course Title:
Financial Accounting
Section #:
1
2
3
4
5
AM
PM
Assignments are to be submitted using student ID numbers only; do not include your name. Please note that assignments that include names or that do not have the box below checked will not be graded.
Please check the box and record your student number below to indicate that you have read and abide by the statements above.
Professor Name:
Dragon Stojanovic
☒
994633928
1.) Create the income statements for the fiscal 2015 pro-forma [NOTE: please use the same format for the income statement as in Exhibit 2]. (13 points)
AGM Income Statement
For fiscal year ending October 31st
2015
2014
Sales
8,215,000 6,497,500
COGS
5,159,850 4,721,900
Gross Profit 3,055,150 1,775,600
Operating Expenses:
Rent 438,500 288,500
Insurance
173,000 183,000
Depreciation Expense 146,625 57,500
(57,500)
Interest Expense 460,000 138,000
Salaries Expense 989,400 694,600
Operating Expenses: 2,207,525 1,361,600
Gains or Losses (190,000) -
Income before taxes 657,625 414,000
Income taxes (24%) 157,830 99,360
Net Income 499,795 314,640
2.) Create the statement of cash flows for the fiscal 2015 pro-forma using the indirect method. (22 points)
CDX Statement of Cash Flows
REFERENCE
CFO:
Net income $499,795
Reconciling items
Loss on sale of equipment $190,000 (6) Depreciation $146,625
Increase in A/R