Financial Statement IP

Complete a set of financial statements based on the transactions and general ledger from the Phase 4 IP. The financials to be completed on an Excel spreadsheet are the following:

• Income statement
• Statement of owners’ equity
• Balance sheet

Click here for the Financial Statement Template.

Based on the financial statements, prepare a memo to the President of LMO Company as to the financial performance of your company. Include the following:

• 3 strategies that the company can employ to improve its performance and increase net income
• Explanation of who might use the financial statements
  • Be sure to include internal and external users.

BELOW ARE THE TRANSACTIONS AND LEDGERS FROM PHASE 4. I have also attached a spreadsheet of unit 4 assignment for your use.

1. Invested $50,000 in the business
2. Paid $100 for phone service
3. Purchased $35,000 equipment on credit
4. Paid $3,000 for 3 months rent
5. Paid $5,500 for 6 months of insurance
6. Paid $1,000 for advertising on credit (Note: This is an expense to the company)
7. Customer purchased $2,000 on account
8. Customer in #7 paid $1,000 on account
9. Paid for #6 advertising
10. Sold to customer and received $5,000 cash