The ledger of AISExperts Inc. showed the following balances after adjustment

The ledger of AISExperts Inc. showed the following balances after adjustment, but before closing, on December 31, 2007, the end of the current year:

Accounts payable 79000 Accounts receivable 104000 Accumulated depreciation – equipment 28000 Depreciation expense 800 Interest revenue 1925 Cash 80500 Common stock (10,000 shares outstanding) 100000 Cost of merchandise sold 635550 Dividend 19100 Equipment 139450 General expenses 114250 Interest expense 5600 Merchandise inventory 154250 Prepaid insurance 11225 Retained earnings ? Salaries Payable 14550 Sales 960250 Selling expenses 140700

The president of AISExperts Inc., has asked you to develop a flexible financial statement package (call the file yourlastnameyourfirstnameFinState07), using Excel that includes:

• a data entry sheet

• a trial balance,

• a single-step income statement,

• a multi-step income statement,

• a statement of retained earnings,

• a classified balance sheet, and

• a post-close trial balance (a trial balance with only accounts not “closed”)

Each statement must be on one sheet in the file and this file should allow the financial statements to be prepared quickly by entering account balances in the appropriate cells on the first sheet of the file (book) – data entry sheet.

Include percentages in the Income Statement (vertical analysis) i.e. gross profit percentage, % of selling expenses to sales, etc. (common sizing and vertical analysis are basically the same analysis techniques – every number in the multi-step income statement are divided by sales).

Your file must contain documentation with comments (Excel commands: INSERT, COMMENT). The comments should be included where you think explanation is required i.e. earnings per share on the bottom of the income statement should probably be explained or retained earnings might require some additional comments.

Use the financial information above as input for your statements. Only formulas/cell references should appear on all sheets except your data entry sheet (except titles and dates) – no hard coded numbers in the financial statements.

SOLUTION PREVIEW

Multi-step income statement

Particulars	Amount	Amount		% of sales
Revenue:
Sales	960250			100%
Less Cost of merchandise sold	635550			66.18589
Gross profit		324700		33.81411

File name: The-ledger-of-AISExperts-Inc..xls File type: application/vnd.ms-excel Price: $10