= $ 1. Complete the accounting equation for Business Solutions using the amounts in this format: $ + $ 2. In discussing Business Solutions latest financial statements, you as the manager say that it is the "the net income results on the bottom line" that really count. What do you mean? Which financial statement are you referring to? Are the results reflected satisfactory? Explain your answers. 3. Does Business Solutions have enough cash to pay its liabilities on December 31, 2020? Please list the December 31 balance of cash, subtract the amount of total current liabilities and calculate the overage or shortfall cash amount. Does Business Solutions need to improve this situation? If your answer is that no improvement is needed, please describe what they are doing correctly. If your answer is yes improvement is needed, please provide a suggestion on how the company may improve. Req 1 Req 2A Reg 2B Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Prepare an income statement for the three months ended December 31, 2020. BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2020 Revenue Computer services revenue $ 44,089 S 415 Expenses Depreciation expense-Office equipment Depreciation expense-Computer equipment Wages expense Insurance expense Rent expense Computer supplies expense Advertising expense Mileage expense Miscellaneous expenses Repairs expense-Computer 1,500 3,600 540 2,265 3,885 2,683 769 250 1,175 Total expenses Net income 17,082 27,007 $ Req 1 Req 2A Req 2B Reg 3 Reg 4 Reg 5 Reg 6 Reg 7 Reg 8 Prepare a balance sheet as of December 31, 2020. $ 50,759 5,768 660 1,620 755 BUSINESS SOLUTIONS Balance Sheet December 31, 2020 Assets Cash Accounts receivable Computer supplies Prepaid insurance Prepaid rent Office equipment Accumulated depreciation-Office equipment Computer equipment Accumulated depreciation-Computer equipment Total Assets Liabilities Accounts payable Wages payable Unearned computer services revenue $ 7,885 8,300 (415) 24,000 (1,500) 22,500 89,947 S S 1,900 440 2,000 4,340 Total Liabilities Equity Common stock Retained earnings >> 66,000 19,607 Total equity Total Liabilities and Equity 85,607 89,947 9 $