35 points QUESTION 4 Note the balance sheet (which includes the statement of owners' equity) and income statement below. Provide (1) an analysis of the financial strength of the company, (2) include any relevant ratios to support your conclusions, and (3) note any errors/issues with the financial reports. Save Answer Balance Sheet (5000) 31-Dec-20 Income Statement (5000) 31-Dec-20 2019 2020 2019 2020 ASSETS Current REVENUE Cash $833.87 $3,257.20 Gross Sales Accounts Receivable $259.33 $143.08 Less: Returns/Allowances Doubtful Accounts ($3.18) ($9.12) Sales discounts Ending Inventory $12.49 $25.79 Net Sales $1,102.50 $3,416.95 $ Cash Fixed Assets Accounts Receivable Equipment $847.38 $743.78 Less: Doubtful accounts Capital Equipment $25.00 $125.00 Accumulated Depreciation ($13.00) ($20.30) COST OF PRODUCTS SOLD $859.38 $848.48 Starting Inventory Direct manufacturing cost TOTAL ASSETS: $1,961.88 $4.265.43 Add Rover Click Save and Submit to save and submit. Click Save All Answers to save all answers. $1.040.8 20% % 0.0% $1,019.9 $868.3 $71.4 $2.5 $2,474.71 2095 0.0% $2,425.2 $1,177.9 $169.8 $5.9 $2.5 $271.8 sund $12.50 $612.6 5411 Save All Answers Save and Submit ch o Rico 19 11:48 PM 28F A00) o la la ) ei 3/27/2022 VOLVO $859.38 $848.48 $250 TOTAL ASSETS: $1,961.88 $4,265.43 LIABILITIES Current Accounts Payable Taxes Payable Short-Term Notes Starting Inventory Direct manufacturing cost Add: Royalties Add Transportation Add: Miscellaneous Cost of Goods Available for Sale Less : Ending Inventory Cost of Products Sold As % of Net Sales Gross Profit on Sales As % of Net Sales $271.8 $30.4 58.7 $43.4 $356.7 5125 $3,229.8 316.7% $2,209.9 -216.7% $125 56126 $412 $11.8 $58.9 $7370 $25.8 $2,435.7 100.4% $10.5 0.4% $294.38 $49.23 $76.00 $419.61 $290.90 $0.00 $ $12.00 $302.90 Long-term Liabilites Notes Payable $5,124.83 $6.932.93 Owners' Equity Stock and Paid-in Capital Common Stock $1.83 $1.69 Paid in Capital $1,491.00 $1,507.71 Total Stock and Paid-in Capital $1.492.83 $1,509.40 Retained Earnings Beginning Balance $52.88 $2.246.87 Net Income $423.60 $1.30 Dividends $0.00 $0.00 Retained Eamings $2.193.99 $1,284.82 Ending Balance $2,246.87 $3,531.69 Total Owners' Equity $3,739.69 $5,041.08 OPERATING EXPENSES General and administrative Sales and Marketing Product Development Depreciation Operations (Salary only) Total Operating Expenses As % of Net Sales $343.8 $290.2 $117.8 $8.0 $2772 $1,037.0 101.7% $383.5 $308.7 $123.7 $7.3 $334.7 $1,157.9 47.7% D NET INCOME Income from Operations Provision for taxes 17.0% Net Income After Taxes As % of Net Sales $289.6 $49.2 $423.6 41.5% -$186.1 $0.00 $1.3 0.1% TOTAL LIABILITES and OE: $9,284.14 $4,265.43 35 points QUESTION 4 Note the balance sheet (which includes the statement of owners' equity) and income statement below. Provide (1) an analysis of the financial strength of the company, (2) include any relevant ratios to support your conclusions, and (3) note any errors/issues with the financial reports. Save Answer Balance Sheet (5000) 31-Dec-20 Income Statement (5000) 31-Dec-20 2019 2020 2019 2020 ASSETS Current REVENUE Cash $833.87 $3,257.20 Gross Sales Accounts Receivable $259.33 $143.08 Less: Returns/Allowances Doubtful Accounts ($3.18) ($9.12) Sales discounts Ending Inventory $12.49 $25.79 Net Sales $1,102.50 $3,416.95 $ Cash Fixed Assets Accounts Receivable Equipment $847.38 $743.78 Less: Doubtful accounts Capital Equipment $25.00 $125.00 Accumulated Depreciation ($13.00) ($20.30) COST OF PRODUCTS SOLD $859.38 $848.48 Starting Inventory Direct manufacturing cost TOTAL ASSETS: $1,961.88 $4.265.43 Add Rover Click Save and Submit to save and submit. Click Save All Answers to save all answers. $1.040.8 20% % 0.0% $1,019.9 $868.3 $71.4 $2.5 $2,474.71 2095 0.0% $2,425.2 $1,177.9 $169.8 $5.9 $2.5 $271.8 sund $12.50 $612.6 5411 Save All Answers Save and Submit ch o Rico 19 11:48 PM 28F A00) o la la ) ei 3/27/2022 VOLVO $859.38 $848.48 $250 TOTAL ASSETS: $1,961.88 $4,265.43 LIABILITIES Current Accounts Payable Taxes Payable Short-Term Notes Starting Inventory Direct manufacturing cost Add: Royalties Add Transportation Add: Miscellaneous Cost of Goods Available for Sale Less : Ending Inventory Cost of Products Sold As % of Net Sales Gross Profit on Sales As % of Net Sales $271.8 $30.4 58.7 $43.4 $356.7 5125 $3,229.8 316.7% $2,209.9 -216.7% $125 56126 $412 $11.8 $58.9 $7370 $25.8 $2,435.7 100.4% $10.5 0.4% $294.38 $49.23 $76.00 $419.61 $290.90 $0.00 $ $12.00 $302.90 Long-term Liabilites Notes Payable $5,124.83 $6.932.93 Owners' Equity Stock and Paid-in Capital Common Stock $1.83 $1.69 Paid in Capital $1,491.00 $1,507.71 Total Stock and Paid-in Capital $1.492.83 $1,509.40 Retained Earnings Beginning Balance $52.88 $2.246.87 Net Income $423.60 $1.30 Dividends $0.00 $0.00 Retained Eamings $2.193.99 $1,284.82 Ending Balance $2,246.87 $3,531.69 Total Owners' Equity $3,739.69 $5,041.08 OPERATING EXPENSES General and administrative Sales and Marketing Product Development Depreciation Operations (Salary only) Total Operating Expenses As % of Net Sales $343.8 $290.2 $117.8 $8.0 $2772 $1,037.0 101.7% $383.5 $308.7 $123.7 $7.3 $334.7 $1,157.9 47.7% D NET INCOME Income from Operations Provision for taxes 17.0% Net Income After Taxes As % of Net Sales $289.6 $49.2 $423.6 41.5% -$186.1 $0.00 $1.3 0.1% TOTAL LIABILITES and OE: $9,284.14 $4,265.43