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D E F G H 1 James Kirk, a connoisseur of fine craft beers, opened Kirk's Beers in Collegetown on 1 January 2020. 2 The

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D E F G H 1 James Kirk, a connoisseur of fine craft beers, opened Kirk's Beers in Collegetown on 1 January 2020. 2 The shop specializes in a selection of seasonal craft beers. You have been hired as manager and your 3 duties include maintaining the store's financial records. Below is the trial balance for Kirk's Beers as of 4 30 June 2020 5 6 Kirk's Beers Balance Sheet 21.Feb-21 Credie Credit 7 8 9 10 11 12 13 14 15 16 Cash Accounts Receivable Inventory Prepaid Expenses Equipment Furniture and Fixtures Accounts Payable Notes Payable Common Stock Sales Revenue Cost of Goods Sold Debit 25,670 3,230 6,800 3.290 15,200 10,500 18 19 20 7,655 8,000 45,000 20,985 G 320 D E F H 20 Cost of Goods Sold 9,500 21 Wage Expense 5,300 22 Advertising Expense 975 23 Insurance Expense 460 24 Interest Expense 25 Income Tax Expense 395 26 Total 81,640 81,640 TRUE 27 28 29 Required: 30 1. From the trial balance, prepare a classified income statement for the six months ended 30 June 31 32 2. After six months in business, James asks you to measure how effectively sales and expenses of the business are bein 33 Compute the net profit margin for Kirk's Beers and compare to industry average. Discuss the results. 34 The following data is available: 35 Industry 36 Total assets 58,500 37 Total liabilities 22,000 Hint: you must calculate net profit margin for both 38 Total equity 36,500 the company and the industry using only the car 39 Salaman 31 32 2. After six months in business, James asks you to measure how effectively sales and expenses of the business are bein 33 Compute the net profit margin for Kirk's Beers and compare to industry average. Discuss the results. 34 The following data is available: 35 Industry 36 Total assets 58,500 37 Total liabilities 22,000 Hint: you must calculate net profit margin for both 38 Total equity 36,500 the company and the industry using only the correct 39 Sales revenue 92,500 data provided (there is more data than you need) 40 22,750 Net income

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