Directions: In Part I of the Assignment Document LP1 Accounting Assignment, identify next to each item which statement the item would appear. The items listed could appear on the income statement (I), balance sheet (B), or statement of cash flows (CF). Then, for each group, explain the difference between the items in the set.
In Part II of the Assignment Document, you will discuss the relationship between the financial statements. For this assignment, you will analyze your own financial situation with one addition, you have inherited $1 million dollars from a long lost relative (tax free)! There is one caveat with the money, you can’t spend it on whatever you want. Use the Personal Balance Sheet and follow the bulleted items below to work through your financial obligations and opportunities that the $1 million brings.
• You MUST first take care of current responsibilities (liabilities), things like a mortgage, credit card debt, current or past bills, car loans, etc. Include a detailed discussion on your current obligations to be taken care of first with the $1 million. Consider the total dollar amount for current obligations and begin deducting your finances from the $1 million (on the Balance Sheet).
