You are the CEO of XYZ Inc., a small manufacturing company that specializes in c

You are the CEO of XYZ Inc., a small manufacturing company that specializes in creating custom machinery for the construction industry. Your company has been in business for 5 years and has seen steady growth in revenue and profits. However, you have recently realized that you need to better understand your company’s financial position in order to make informed decisions about future growth and investments.
Your task is to create an income statement and balance sheet for XYZ Inc. using the following information:
Revenues for the last fiscal year (ending December 31st) were $5,000,000
Cost of goods sold for the last fiscal year were $3,000,000
Operating expenses for the last fiscal year were $1,200,000
Interest expense for the last fiscal year was $100,000
Taxes for the last fiscal year were $500,000
The company has $1,000,000 in cash in the bank
The company has $1,000,000 in accounts receivable
The company has $1,800,000 in inventory
The company has $500,000 in accounts payable
The company has $1,200,000 in long-term debt
The company has $2,000,000 in common stock
The company has $100,000 in retained earnings
Instructions:
Create an income statement for XYZ Inc. for the last fiscal year (ending December 31st) using the information provided above. Be sure to include revenues, cost of goods sold, gross profit, operating expenses, interest expense, taxes, and net income.
Create a balance sheet for XYZ Inc. as of December 31st of the last fiscal year using the information provided above. Be sure to include current assets (such as cash, accounts receivable and inventory), current liabilities (such as accounts payable), long-term debt, stockholders’ equity (including common stock and retained earnings), and total liabilities and equity.
Once you have completed your income statement and balance sheet, analyze the financial position of XYZ Inc. and provide a brief summary of your findings. What are the strengths and weaknesses of the company’s financial position? How does the company’s financial position compare to industry standards? What actions, if any, do you recommend the company take to improve its financial position?
Your final report should include the income statement, balance sheet, and analysis of the company’s financial position in a clear and professional manner.
If you need help getting started, watch this video.
https://oc.hosted.panopto.com/Panopto/Pages/Viewer.aspx?id=2d7acc5c-3843-4d95-9fac-b067014048b0
Submit your report as a Word document or PDF.