1) Briefly describe how a balance sheet and income statement are directly related. Select a few specific items on each of these statements and describe how they can be directly related with both balance sheet and income statement.

2) Calculate the net income after tax for a company with sales of $180 million at 38% gross profit, expenses of $51,476,924 and a 35% tax rate. Show your work.

3) A company's annual sales grows from $10 million to $15 million and its A/R grows from $1,250,000 to $1,800,000. Did the condition of the A/R improve? Show your work.