Background and Information Mr. Hanks owns and operates a laser cutting service and the company is called Hanks & Co. Table 2: Financial position of the business on 31 December 2020 Cash balance: $13,450 Account receivable: $22,235 Supplies: $6,750 Account payable: $ 14,435 Hanks & Co. capital: $270,000 Land: $242,000 During January 2021, the following events occurred summarised in the Table 3 Table 3: Financial Records for January 2021 1. Mr. Hanks use $15,000 of his personal money and deposited the cash in the business bank account. 2. The company deliver the finish product to an automotive company and received payment on account $11,800. 3. Mr. Hanks purchased raw materials supplies on account, $7,970. 4. Mr. Hanks paid $5,600 of the balance in the accounts payable. 5. One laser cutting machine had undergo a preventive maintenance and the cost is $2,650, to paid later on account. 6. The company expenses recorded for the month: (a) Paid administration cost, $2,200. (b) paid advertisement cost, $1,660, (c) factory overhead $12,000 7. Mr. Hanks collected cash from a customer from account receivable, $16,500. 8. Mr. Hanks sold the metal (raw material) supplies to another company for $1,280 cash, which was the cost of the supplies. 9. Mr Hank withdrew cash of $2,700 for personal use. 10. Mr. Hanks paid off the balance of account payable. Based on the given information, a. Analyse the effects of the preceding transactions on the accounting (10 Marks) equation of Hanks & Co. b. Prepare the income statement of Hanks & Co. for the month ended (5Marks) 31st January 2021. List expenses in decreasing order by amount. c. Prepare the balance sheet of Hanks & Co. at 31st January 2021. (5Marks) d Determine current ratio and debt ratio of the firm (5Marks)