Analyze the financial statements for the company & provide financial advice on how the company can improve following the scandal

Revenue Sales Sales Returns and Allowances Net Sales Cost of Goods Sold Inventory, January 1 Net Purchases Cost of Goods for Sale Inventory, December 31 Cost of Goods Sold Gross Profit Operating Expenses Advertising Expense Salaries Expense Bad Debts Expense Bank Charges and Interest Expense Delivery Expense Depreciation Expense - Building Depreciation Expense - Equipment Depreciation Expense-Delivery Equipment Utilities Expense Other Expenses Total Expenses Net Income 2008 $1530 000 30.000 1 500 000 240 000 1.030 000 1270 000 220 000 1 050 000 450 000 15 300 116 400 1.600 47 200 19 500 33 750 17 800 5 12 500 16 450 10 500 291 000 $159 000 2009 $1 320 800 k 20 800 1 300 000 200 000 892 500 1 092 500 240 000 852 500 447 500 15 000 110 950. 1 350 43 100 19 000 28 000 19 500 14 600 16 250 13 550 281 300 $166 200 Balance Sheet as of December 2009: ASSETS: Current Assets: Cash Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Prepaid Rent Total Current Assets Fixed Assets: Furniture Less: A/D - Furniture Book Value Furniture Computers Less: A/D-Computers Book Value Computers Building Less: A/D-Building Book Value Building Land Total Fixed Assets Total Assets LIABILITIES: Current Liabilities: Accounts Payable HST Payable $10,000 3,000 15,000 10,000 290,000 60,000 20,000 $81,300 2,500 8,000 3,200 6,000 12,000 $7,000 $5,000 $230,000 400,000 5,000 $113,000 $642,000 $755.000 Less: HST Recoverable Net HST Shipping Payable Unearned Revenue Total Current Liabilities Long-Term Liabilities: Unearned Revenue Bank Loan Mortgage Total Long Term Liabilities Total Liabilities Owner's Equity: Capital (Jan. 1) Net Income Less: Drawings Capital (Dec. 31) Total Liabilities and Owner's Equity 9,000 $11,000 3,000 12,000 75,000 140,000 300,000 45,000 166 200 2,000 M $31,000 $515,000 $546,000 $209,000 $755,000 Revenue Sales Sales Returns and Allowances Net Sales Cost of Goods Sold Inventory, January 1 Net Purchases Cost of Goods for Sale Inventory, December 31 Cost of Goods Sold Gross Profit Operating Expenses Advertising Expense Salaries Expense Bad Debts Expense Bank Charges and Interest Expense Delivery Expense Depreciation Expense - Building Depreciation Expense - Equipment Depreciation Expense-Delivery Equipment Utilities Expense Other Expenses Total Expenses Net Income 2008 $1530 000 30.000 1 500 000 240 000 1.030 000 1270 000 220 000 1 050 000 450 000 15 300 116 400 1.600 47 200 19 500 33 750 17 800 5 12 500 16 450 10 500 291 000 $159 000 2009 $1 320 800 k 20 800 1 300 000 200 000 892 500 1 092 500 240 000 852 500 447 500 15 000 110 950. 1 350 43 100 19 000 28 000 19 500 14 600 16 250 13 550 281 300 $166 200 Balance Sheet as of December 2009: ASSETS: Current Assets: Cash Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Prepaid Rent Total Current Assets Fixed Assets: Furniture Less: A/D - Furniture Book Value Furniture Computers Less: A/D-Computers Book Value Computers Building Less: A/D-Building Book Value Building Land Total Fixed Assets Total Assets LIABILITIES: Current Liabilities: Accounts Payable HST Payable $10,000 3,000 15,000 10,000 290,000 60,000 20,000 $81,300 2,500 8,000 3,200 6,000 12,000 $7,000 $5,000 $230,000 400,000 5,000 $113,000 $642,000 $755.000 Less: HST Recoverable Net HST Shipping Payable Unearned Revenue Total Current Liabilities Long-Term Liabilities: Unearned Revenue Bank Loan Mortgage Total Long Term Liabilities Total Liabilities Owner's Equity: Capital (Jan. 1) Net Income Less: Drawings Capital (Dec. 31) Total Liabilities and Owner's Equity 9,000 $11,000 3,000 12,000 75,000 140,000 300,000 45,000 166 200 2,000 M $31,000 $515,000 $546,000 $209,000 $755,000