A brief report from you, the accountant, to me (the owner of the business). Provide a very brief analysis of the Profit and Loss and Balance Sheet, plus just one or two paragraphs advising me about the implications of the quote described on page 29 of the workbook.

There is no requirement for a formal report structure, however a firm recommendation of any action I might need to take would be appreciated. This could be your final paragraph.

Balance sheet below

Profit and loss below

0000 Assets 1-1000 Current Assets 1-1100 Bank Accounts 1-1110 FirstBank Cheque Account 1-1120 FirstBank Savings Account Total Bank Accounts 1-1200 Accounts Receivable 1-1320 Inventory - Javas Ultra02 Systems Total Current Assets 1-2100 Property, Plant \& Equipment 1-2510 Motor Vehicles 1-2520 Accum. Depr Motor Vehides 1-2521 Office equipment and computers Total Property. Plant \& Equipment 1-2810 furniture and Fittings at Cost 1-2820 Acc. Depr - Furniture \& Fittings Total Assets 2-0000 Liabilities 2-0010 Current Liabilities 2-1140 Accounts Payable 2-1211 GST Liabilities 2-1212 GST Balance 2-1213 GST Collected 2.1214 GST Paid Total GST Liabilities Total Current Liabilities 2-2000 Non Current Liabilities 2-2105 FirstBank Business Loan Total Non Current Liabilities Total Liabilities Net Assets 3-0000 Equity 3-1000 Owner's Funds introduced/Personal Income 3.2000 Owner's Drawings/Personal Expenses 3-8000 Retained Earnings 3.9000 Current Year Earnings Total Equity Profit and loss report Accrual mode 01 Dec 2022 - 31 Dec 2022 Total 4-0000 Income 4-1000 Sales - Javas Ultra02 Systems 4-1400 Sales - Installation 4-3000 Service and repair income 4-5006 Interest income Total Income $29,795.45 $32,631.82 ($600.00) $66.00 $61,893.27 5.0000 Cost of Sales 5-3000 labour 5-5060 Other Suppliers 5.5100 Cost of Sales - Javas Ultra02 Systems Total Cost of Sales Gross Profit $6,272.73 $6,531.82 $36,000.00 $48,804.55 $13,088.72 6-0000 Expenses 6-0480 Lease of equipment 6-1160 Bank Fees 6-1430 Electricity \& Gas 6-3020 Office Supplies 6-4460 Telephone & Internet Total Expenses Operating Profit Net Profit $20,000.00 $36.00 $504.55 $3,430.64 $654.55 $24,625.74 ($11,537.02) ($11,537.02)