1. Accounting (Activities over the month of October): On October 1, Celina Gomez organized Real Answers a new consulting firm. The same days eh contributed $84K cash in exchange for common stock for the business. On October 31, the company records showed the following items and amounts: Cash $11,360 Accounts Receivable $14,000 Office Supplies $3,250 Land $46,000 Office Equipment $18,000 Accounts Payable $8,500 Common Stock $84,000 Cash Dividends $2,000 Consulting Fees Earned $14,000 Rent Expense $3,550 Salaries Expense $7,000 Telephone Expense $760 Miscellaneous Expense $580 Use the information above to prepare the following: a) Income Statement b) Statement of Retained Earnings c) Balance Sheet 2. Breakeven Analysis: A t-shirt seller sells t-shirts every day at $12 each. The cost of production (material, labor and direct overheads) is $10. The daily fixed costs are $150. (1) What is the profit the seller makes if 150 t-shirts are sold a day at $12 (2) The seller estimates, as the demand for t-shirts is elastic, that if the price were lowered to $11, a total of 225 t-shirts would sell. Would the t-shirt seller breakeven? If not, what would be the shortfall? (3) If the seller sells 315 t-shirts a day for $11, how much profit does the seller make? 3. Value of money (FV and NPV): (1) What is the FV of $100 after three years if the rate of interest is 4% p.a.? (2) If the FV of a sum of money is about $121.55 in four years, what is the PV if the rate of interest is 5% p.a? 2