Final answer:
To create financial statements for an online fitness company with an initial investment of $100,000, half equity and half debt, we would list $50,000 under equity and $50,000 under liabilities on the balance sheet. Without specific revenue and expense data, we can't provide an actual income statement or cash flow statement, but we would typically account for membership revenue and various operating expenses in the income statement, and initial investments in the cash flow statement.
Step-by-step explanation:
Creating financial statements for an online fitness company
To create financial statements for an online fitness company with an initial investment of $100,000, we must first outline the equity and debt portions. Given that $50,000 is equity, this amount will be reflected in the shareholders' equity section of the balance sheet. The remaining $50,000 leveraged as debt will appear under liabilities, likely as a long-term loan. Financial statements consist of the balance sheet, income statement, and cash flow statement.
The balance sheet shows the company's assets, liabilities, and equity at a specific point in time. In this case, the initial assets would be $100,000, split between current assets (such as cash or short-term investments) and non-current assets (such as equipment for video production). Liabilities would initially include the $50,000 debt, and equity would showcase the $50,000 from investors.
An income statement details the company's revenues and expenses over a certain period, leading to net income. Since the question does not provide revenue or expense figures, we can't create an actual income statement. However, typically, revenue would be generated from membership fees, and expenses might include production costs, marketing, salaries, and interest on debt.
The cash flow statement summarizes the inflows and outflows of cash, divided into operations, financing, and investing activities. The initial investment would be listed under cash flows from financing activities and would show the cash inflows from equity and debt.