Homework
Purpose of Homework:
The purpose of this homework is to allow students to gain the necessary knowledge to manage cost and determine project viability through capital budgeting techniques, so they can effectively minimize the cumulative error between the projected values and actual values over the relevant time horizon.
Note: The official term Income Statement is also known informally as Profit and Loss Statement.
Task:
Create a simple Profit and Loss Statement for the first two years of your dream company following the income statement format. (This is to be created from scratch for the first two years of your own company, do not copy a company from the internet).
Assume this is the first two years of your dream company, starting from scratch. (We will use this company next week to create a balance sheet and cash flow statement.) Explain how you calculated revenue, cost of goods sold (if required, service companies may not have COGS), and operating expenses (detail each expense account listed) for year one and explain changes for each account in order to report the year 2 numbers.
Analyze the revenue items based on information collected and make adjustments. The start for your income statement is calculating revenue.
Provide calculations and explanations for how you calculated revenue, cost of goods sold (if required), and operating expenses (show each expense).
Format your homework according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.