1. With Kim's help, Richard has purchase, installed and setup his new accounting software program. In fact, he has just printed his first income statement and balance sheet, reproduced below. Star Industries Income Statement for year ending 12/31/20XX Sales revenue 556,428 Less cost of goods sold 205,200 Gross margin 351,2281 Less operating expenses Marketing 40,000 Sales and administrative 20,000 Depreciation 10,000 Total operating expenses 70,000 Operating income 281,2281 Less interest expense 7,0001 Income before taxes 274,2281 Income tax expense 40,000 Net income 234,228 Star Industries Balance Sheet for 12/31/20XX Assets Current Assets Cash $ 52.400.00 Accounts receivable $ 11,000.00 Inventory $ 15,900.00 Total current assets $ 79,300.00 Fixed assets Property, plant and equipment S 80,000.00 Accumulated depreciation S (20,000.00) Net fixed assets $ 60,000.00 Total assets $739,300.00 Liabilities and Owner's Equity Current liabilities Accounts payable Note payable to bank Deposits from customers Total current liabilities Long term mortgage Total liabilities Owner's Equity Retained earnings Total Owners' Equity Total liability and equities $ 5,300.00 $ 2.700.00 $ 6,000.00 $ 14,000.00 $ 40,000.00 $ 54,000.00 $ 85,300.00 $ 85,300.00 $139,300.00 To see if he really understands what's going on, Kim asked Richard the following questions. Richard answered most of them correctly, can you? 1. How much revenue did the business produce?556,428 2. What costs did the business have for financing? 3. What can you turn into cash in one year? 4. What did it cost to make your product? 5. What is the value of everything the company owns? 6. How much profit did the company make? 7. How much is the business worth to Richard? 8. How much does the business need for its continuing operation? 9. What debts will take longer than a year to pay? 10. Can this business be considered liquid