Agata Polanska opened her first Pierogi Factory restaurant in Kitchener, Ontario in 2015. Customers love her authentic Polish pierogi, so Agata has steadily expanded her business to include four restaurants and a central kitchen facility. Pierogi Factory Ltd.s most recent fiscal year ended on December 31, 2020.

Requirements What form of business organization is the Pierogi Factory? How do you know? Why might have Agata decided to use this form of organization?

Information regarding Pierogi Factorys assets, liabilities, shareholders equity, sales, expenses, and cash flows for its 2020 fiscal year is given below.

Accounts payable .................... $41,564 Income tax expense .................... $52,274 Accounts receivable .................... 15,632 Interest and other expense, net .................... 9,225 Accrued liabilities .................... 334,962 Inventories .................... 49,518 Cash flows provided by operating activities .................... 352,520 Long-term liabilities .................... 313,586 Cash flows used by financing activities .................... 133,074 Other operating expenses .................... 700,090 Cash flows used in investing activities .................... 159,461 Prepaid expenses .................... 52,438 Cash, beginning of year .................... 43,854 Property and equipment, net .................... 1,071,892 Cash, end of year .................... ? Retained earnings, beginning of year .................... 495,983 Common shares .................... 10,000 Retained earnings, end of year .................... ? Cost of goods sold .................... 526,628 Salaries and wages .................... 759,998 Depreciation expense .................... 88,010 Sales .................... 2,275,719 Dividends paid .................... 42,270 Use this information and Excel to prepare a trial balance at December 31, 2020.

Use the information from Requirement 2 and Excel to prepare all four of the companys financial statements for 2020.

Before proceeding to the next Requirements, you should compare your response to Requirement #2 to the solution and correct any errors you made.

Did the Pierogi Factory have net income or net loss for its fiscal year 2020? Over what period of time was this amount earned?