Baron Coburg Case

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1. Whose financial statements should we prepare (e.g., the baron, vassals, farms, etc..?) Solution: The financial statements will be prepared for “Vassals” i.e. for Ivan and Frederick and additionally for “Baron”. 2. What financial statements should we prepare? Solution: The financial statements which should be prepared are as following:  Income Statement  Statement of Retained Earnings  Statement of Cash Flows  Balance Sheet 3. What period do these statements cover and why (e.g., year, quarter, month, etc..?) Solution: The statements will cover two quarters.  1st Quarter – Summer: When the farmers will grow the wheat.  2nd Quarter – Fall: When the wheat will be harvested. 4. What currency are these…show more content…
ASSETS Current Assets Seed 223 Fertilizer 0 Non-Current Assets Ox 36 Land 100 Total Assets 359 LIABILITIES A/C payable 3 STAKEHOLDER 'S EQUITY Baron 's Contributed Capital 162 Retained Earnings 194 Total Liabilities and Stakeholder 's Equity 359 Financial Statements for Frederick: Starting Balance Sheet for Frederick Frederick Beginning Balance Sheet For the Period Ending Month AA, Year ABCD (In Bushels of Wheat) ASSETS Current Assets Seed 10 Fertilizer 1 Non-Current Assets Ox 40 Land 50 Total Assets 101 LIABILITIES 0 STAKEHOLDER 'S EQUITY Baron 's Contributed Capital 101 Total Liabilities and Stakeholder 's Equity 101 Income Statement for Frederick Frederick Income Statement For the Period Ending Month AA, Year ABCD (In Bushels of Wheat) Revenue Wheat produced 138 Operating Expenses Seed Used 10 Fertilized Used 1 Ox (Value 40 Bushels, 1 Year Depreciation = 4) 4 Plow Usage 1 Total Operating Expenses 16 Net Income 122 Earnings per share (Net Income / # of Shares; = 122/101 = 1.21) 1.21 **** Assuming every bushel contributed by Baron is worth 1 share **** Statement of Retained Earnings for

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