Record the transactions (journal entries) and other considerations for the High Street Caf from the period January 1, 2022 through December 31, 2022. NOTE WELL:

1. Record the transactions (journal entries) and other considerations for the High Street Café from the period January 1, 2022 through December 31, 2022. NOTE WELL: Be sure to remember to include any opening balances (shown in BOLD in the T-Accounts listed) when adding up items in the T-accounts.
2. , for financial reporting purposes (not tax purposes) pre-pare, "in good form" i.e. proper formats for the reports:
3. 
   
   1. an income statement for the 12-month period from January 1, 2022 through December 31, 2022. Assume an income tax rate of 20% is appropriate for the High Street Cafe
   2. a statement of financial position (i.e. balance sheet) as of December 31, 2022.
   3. a statement of cash flows using the direct method for the High Street Cafe for the 12-month period from January 1, 2022 through December 31, 2022.
   4. a statement of cash flows using the indirect method for the High Street Cafe for the 12-month period from January 1, 2022 through December 31, 2022. You need only show the cash flow from operations section for the indirect cash flow statement.

3. Overall, how would you characterize High Street Cafe's performance in 2022? Should Jim and Michelle be pleased? Uncle Don? Jim and Michelle's parents? What criteria did you use to gauge HSC's performance? Briefly explain your answer.

4. From a cash flow, cash balance and cash needs standpoint, how has High Street performed in 2022? What cash criteria did you use to gauge HSC's cash performance? Briefly explain your

answer.

5. The $150 thousand bank loan to HSC had the following requirements: (1) HSC should have earnings before interest and taxes of at least 2.5 times its interest expense; and, (2) HSC maintain an end-of-year interest-bearing debt to end-of-year equity ratio of not more than 1 to 1. As of December 31, did High Street meet the bank's requirements? If you were the bank lending officer for the bank that lent High Street Café $150 thousand, would you approve HSC's request for a new loan on January 1, 2023? Why or why not? Briefly explain.