1. Prepare classified Balance Sheet, a multiple-step Income Statement, and Cash Flow Statement using the indirect method for Smith Manufacturing. Use the attached spreadsheet to prepare these.

2. Use the financial statements from #1 to prepare the following analysis in Excel: horizontal analysis, vertical analysis, and ratio analysis. In addition to the numerical calculations, prepare a Word doc that contains a brief written analysis of your findings. For example, is this company struggling, doing well, etc.

Smith Manufacturing, Inc. Trial Balance December 31, 20XX Cash Accounts receivable Allowance for uncollectible accounts Prepaid insurance Inventory Land Building Accumulated depreciation-building Equipment Accumulated depreciation-equipment Accounts payable Note payable (due in 10 months, 5%) Salaries payable Interest payable Note payable (due in 5 years, 3%) Common Stock (3,000 shares outstanding) Retained earnings Sales revenue Cost of goods sold Salaries expense Insurance expense Depreciation expense Interest expense Bad debt expense Totals DR 362,750 320,750 CR 15,000 10,000 30,000 50,000 150,000 7,500 500,000 50,000 105,000 125,000 500,000 300,000 171,000 850,000 550,000 150,000 2,123,500 2,123,500 Smith Manufacturing, Inc. Post-Closing Trial Balance December 31, 20XX DR Cash Accounts receivable Allowance for uncollectible accounts Prepaid insurance Inventory Land Building Accumulated depreciation-building Equipment Accumulated depreciation-equipment Accounts payable Note payable Salaries payable Interest payable Note payable (due in 5 years, 3%) Common Stock (3,000 shares outstanding) Retained earnings Sales revenue Cost of goods sold Salaries expense Insurance expense Depreciation expense Interest expense Bad debt expense Totals CR 15,000 225,750 20,000 5,000 80,000 50,000 150,000 7,500 500,000 50,000 55,000 50,000 5,000 17,250 350,000 300,000 171,000 1,025,750 1,025,750 Smith Manufacturing, Inc. Adjusting Entries December 31, 20XX Debit Credit Bad debt expense(1% of net sales) $8,500 Allowancs for bad debt not collected $8,500 Insurance Expenses $2,000 Prepaid insurance $2,000 Inventory $10,000 Cost of Goods sold $10,000 Depreciationbuilding $7,500 Accumulated depreciation $7,500 Depreciationequipment $50,000 Accumulated depreciation $50,000 Interest expense $ 21,250.00 Interest payable $ 21,250.00 Salaries Expense $2,000 Salaries Payable $2,000 $101,250.00 $101,250.00 Income Summary $781,250.00 Cost of Goods Sold $540,000.00 Salaries Expense $152,000.00 Insurance Expense $ 2,000.00 Depreciation Expense $ 57,500.00 Interest Expense $ 21,250.00 Bad Debt Expense $ 8,500.00 Sales Revenue $850,000.00 Income Summary $850,000.00 Income Summary $ 68,750.00 Retained Earnings $ 68,750.00 625 4166.667 7500 50000 Smith Manufacturing, Inc. Balance Sheet December 31, 20XX Smith Manufacturing, Inc. Income Statement December 31, 20XX Smith Manufacturing, Inc. Statement of Cash Flow December 31, 20XX