ABC Inc is a restaurant that serves sandwiches and made the following transactions ABC Inc Issues $55,000 worth of common stock to investors and receives cash ABC Inc uses cash to buy a $10,000 restaurant space to prepare food (consider this as property) ABC Inc uses cash to buy $20,000 worth of machines (or equipment) for preparing sandwiches ABC Inc receives $15,000 of materials (or supplies) from a supplier for making sandwiches (chicken, bread, etc ) and says that it will pay within 6 months ABC Inc hires 3 people to make the sandwiches who it pays $1,500 each ABC Inc uses only $12,000 of the $15,000 in materials to make the sandwiches (Hint supplies materials get converted to Inventory here) ABC Inc sells all the sandwiches in inventory for $30,000 Out of the $30,000$15,000 in Cash and $15,000 will be paid after 2 months ABC Inc receives $15,000 in materials from a supplier who it pays in cash ABC Inc finds out from a research study that its brand value is $10,000 ABC Inc acquires Clearwater Inc for $30,000 by cash Clearwater Inc is a restaurant that had land worth $15,000 and had no other assets but had a very good brand name People liked and trusted the name of Clearwater Inc ABC Inc uses $10,000 of the materials to make sandwiches ABC Inc sells 80 of the sandwiches in its inventory for $25,000 to a customer She paid $20,000 in cash and will pay the remaining $5,000 within 1 month (note that 80 means that 80 of the dollar amount of inventory is sold) ABC Inc records depreciation expense of $7,000 on equipment from (c) and $3,000 on the property from (b) but does not record depreciation on LAND 14 ABC Inc pays $6,000 to its staff for administration and accounting expenses (consider them as wages) Please do the journal entries, Balance Sheet, Income statement, and Cash flow statement And also calculate the 1 Return on Equity 2 Current ration 3 Debt to Equity Ratio 4 Quality of Income

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ABC Inc. is a restaurant that serves sandwiches and made the following transactions: ABC Inc. Issues $55,000 worth of common stock to investors and receives

ABC Inc. is a restaurant that serves sandwiches and made the following transactions:

ABC Inc. Issues $55,000 worth of common stock to investors and receives cash
ABC Inc. uses cash to buy a $10,000 restaurant space to prepare food (consider this as property).
ABC Inc. uses cash to buy $20,000 worth of machines (or equipment) for preparing sandwiches.
ABC Inc. receives $15,000 of materials (or supplies) from a supplier for making sandwiches

(chicken, bread, etc.) and says that it will pay within 6 months.
ABC Inc. hires 3 people to make the sandwiches who it pays $1,500 each
ABC Inc. uses only $12,000 of the $15,000 in materials to make the sandwiches (Hint:

supplies/materials get converted to Inventory here)
ABC Inc. sells all the sandwiches in inventory for $30,000. Out of the $30,000$15,000 in

Cash and $15,000 will be paid after 2 months.
ABC Inc. receives $15,000 in materials from a supplier who it pays in cash.
ABC Inc. finds out from a research study that its brand value is $10,000.
ABC Inc. acquires Clearwater Inc. for $30,000 by cash. Clearwater Inc. is a restaurant that had

land worth $15,000 and had no other assets but had a very good brand name. People liked and

trusted the name of Clearwater Inc.
ABC Inc. uses $10,000 of the materials to make sandwiches.
ABC Inc. sells 80% of the sandwiches in its inventory for $25,000 to a customer. She paid

$20,000 in cash and will pay the remaining $5,000 within 1 month. (note that 80% means that 80%

of the dollar amount of inventory is sold)
ABC Inc. records depreciation expense of $7,000 on equipment from (c) and $3,000 on the property from (b) but does not record depreciation on LAND.