Baron Coburg Case

1567 Words Mar 20th, 2014 7 Pages
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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