can you please tell me if my response to the question is good if not please advise me thank you
Comparative Balance sheet December 31, 2020 and 2019 2020 2019 $ Assets Current Assets: Cash Accounts Receivable, Net Inventory (sunglasses) Prepaid Insurance Prepaid Rent Total Current Assets $ S S $ $ $ 90,000 130,000 135,000 25,000 un 70,000 90,000 80,000 20,000 12,000 272,000 $ S 380,000 Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation - Equipment Total Property, Plant, and Equipment Total Assets S $ $ $ 300,000 -75,000 225,000 605,000 $ $ $ 9,000 -50,000 200,000 472,000 ZUZU 2019 Lies un STOCK TOUCTS Equity Current Liabilities: Accounts Payable Notes Payable Salaries Payable Federal Income Taxes Payable Total Current Liabilities S s $ $ $ 75,000 20,000 40,000 10,000 145,000 $ $ $ S $ 40,000 60,000 30,000 25,000 155,000 Long Term Liabilities Note Payable Total Liabilities S $ 60,000 205,000 S $ 37,000 192,000 130,000 Stockholders' Equity: Common Stock, S5 Par Paid In Capital in Excess of Par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ $ $ $ $ 175,000 25,000 200,000 400,000 605,000 $ $ S $ 150,000 280,000 472,000 Comparative Statement of Income For the Years Ended December 31, 2020 and 2019 2020 2019 $ 850,000 $ 475,000 $ 375,000 $ 790,000 $ 450,000 $ 340,000 Sales Cost of Goods Sold Gross Margin Operating Expenses: Salaries and Wages Expense Rent Expense Depreciation Expense Total Operating Expenses Income from Operations oss on Sale of Equipment Interest Expense Increase (Decrease) in Operating Income Income before Taxes Federal Income Taxes Net Income $ 120,000 S 30,000 $ 32,000 $ 182,000 $ 193,000 s 2,000 $ 4,000 S -6,000 200,000 40,000 10,000 250,000 90,000 sunnon 5,000 -5,000 S 187,000 S 56,100 $ 130,900 S $ 85,000 25,500 59,500 Comparative Statement of Retained Earnings For the Years Ended December 31, 2020 and 2019 2020 2019 Retained Earnings, Beginning $ 150,000 S 130,000 of Year Net Income $ 130,900 $ 59,500 Less: Dividends $ 80,900 S 39,500 Retained Earnings, End of Year 200,000 $ 150,000 1. Equipment with a cost of $50,000 on which accumulated depreciation has been recorded for $7,000 was sold for $41,000 cash. Additional equipment was purchased using a long-term note payable and cash. 2. Stock was issued for cash. 3. Dividends were paid in cash. Question: Prepare the memo in Word analyzing the company's strengths and weaknesses with two recommendations. Once the memo is prepared then you will only need to copy and paste it into the box where indicated in Blackboard. Students must use the memo template that is attached at the end of the practice set. Answer: after analyzing the company's strengths are that it has positive Current Assets, and Stockholders Equity and over all positive Net Income. However, the Company's weakness is in the total current Liabilities. My two recommendations: 1.) learning about government grants see if she can apply for any grants to help boost Total Current Assets. 2.) See if there is a way to reduce Total Operating Expenses through lowering salaries and rent expense, as well as reducing Notes Payable
