Felix PharmaceuticalsInc. is a diagnostic company. They are a small start-up and have some promising developments for covid- 19 diagnostic tools. They have just completed their accounts for December 2019 but they did not finish the audit, as unfortunately most of their key staff in the finance team are ill due to the pandemic.
You have been recruited as a consultant by the CEO as recent graduate from EU Business School to assist in this difficult situation. The CEO is a very bright scientist but gets very afraid of accounts. Your job is to get him through this difficult period with your deep insights about finance and accounting.
Instructions – Your client has asked you to prepare the following for the report:
The remaining marks, 5% are for overall professional presentation of the report.
ANNEX 1 – The CEO’s questions.
The CFO before she became ill prepared a budget but you need to prepare the journals and explain each one. The CEO is also worried about the financial situation of the company once these transactions are processed. The following journals are required to be prepared and explanations required.
NB Please note that creditors over 1 year are long term loans.
Annex 3 Income statement
Appendix 4 Fixed assets
Extract from the accounts – Fixed asset and depreciation policy
Appendix 5 Share capital