$1)$ You will prepare the following for the business described above: $($SEE PICTURE FOR DATA NEEDED TO PREPARE THE STATEMENTS$)$

a$)$ Income Statement

b$)$ Statement of Cashflow $($direct method $2)$After the first three months of doing business, you want to calculate some ratios to see how

your business is doing. You are considering a loan in the amount of $$20,000$ to upgrade your

store$/$office and you want to make sure that you can afford the loan payments $($$$750$ per month

for $3$ years$).$

Use the income statement you created in part $2$ of this assignment and calculate at least two

ratios that can be calculated from an income statement $($Hint: not all ratios can be calculated

from an income statement!$)$

Based on your calculations, comment on whether or not you should take out the loan for

$$20,000.$ Be specific and explain your decision in detail! $($Use the following information to prepare the various statements:

$\backslash$table$[[$Date$,$Transaction Description,Receipts,Payments$],[\frac{1}{1}\frac{?}{2020},$Cash deposit to start business,$$20,000\mathrm{.}00,],[\frac{1}{1}\frac{?}{2020},$Three month's rent for office$/$store space,,$$2,400\mathrm{.}00$