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Accounting Help: Please help me fill in my template at the bottom SERIAL PROBLEM: KATE'S CARDS (Note: This is a continuation of the Serial Problem:

Accounting Help: Please help me fill in my template at the bottom

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SERIAL PROBLEM: KATE'S CARDS (Note: This is a continuation of the Serial Problem: Kate's Cards from Chapter 1 through Chapter 12.) SP13. Kate is very pleased with the results of the first year of operations for Kate's Cards. She ended the year on a high note, with the company's reputation for producing quality cards leading to more busi- ness than she can currently manage. Kate is considering expanding and bringing in several employ- ees. In order to do this, she will need to find a larger location and also purchase more equipment. All this means additional financing. Kate has asked you to look at her year-end financial statements as if you were a banker considering giving Kate a loan. Comment on your findings and provide calcula- tions to support your comments. KATE'S CARDS Income Statement Year Ended August 31, 2019 Sales revenue. $185,000 Cost of goods sold . 106,000 Gross profit . . . . . .. . . 79,000 Operating expenses Wages Consulting. 18,000 Insurance 11,850 Utilities 1,200 Rent .. . 2,400 Depreciation . . .. 14,400 3,250 Total operating expenses . .. . 51, 100 Income from operations Interest expense. 27,900 . . . . . . 900 Income before income tax Income tax expense . 27,000 5.400 Net income . . . $ 21,600

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