DEAR SIR/MADAM

kindly, Can you help me.

Please answer as soon as possible, will upvote the answer and comment back. thank you.

At the end of last month, Paarl Manufacturing had $45,954 in the bank. It owed the bank $222,500 for their mortgage. It also had a working capital loan of $31,000. Its customers owed $22,938 and it owed its suppliers $12,995. The company owned property worth $246,000. It had $120,000 in finished goods, $101,500 in raw materials, and $40,500 in work in progress. Its production equipment was worth $446,000 when new (partially paid for by a large government loan due to be paid back in three years) but had accumulated a total of $244,000 in depreciation$35,500 worth last month. The company has investors who put up $ 101,000 for their ownership. It has been reasonably profitable; this month the gross income from sales was $223,000, and the costs associated with sales was only $39,000. Expenses were also relatively low; salaries were $43,000 last month, while the other expenses were depreciation, maintenance at $1520, advertising at $3450, and insurance at $330. In spite of $32,917 in accrued taxes (Paarl pays taxes at 55 percent), the company had retained earnings of $132,000. Construct a balance sheet (as of the end of this month) and income statement (for this month) for Paarl Manufacturing. Should the company release some of its retained earnings through dividends at this time? First, construct a balance sheet as of the end of this month. Start with the assets section of the balance sheet and then the liabilities and owners' equity sections. Balance Sheet Paarl Manufacturing As of the end of the month Assets Current assets Cash Accounts receivable 22938 Finished goods 81000 Raw materials 101500 Work in progress 40500 Total Current Assets Long-term assets Property Equipment 246000 279500 Total Long-Term Assets Total assets Liabilities and Owners' Equity Current Liabilities TUI Total Current Liabilities Long-term Liabilities Total Long-Term Liabilities Total Liabilities Owners' Equity Total Owners' Equity Total Liabilities and Owners' Equity Now, construct an income statement for this month. (Use parentheses or a minus sign for a net loss.) Income Statement Paarl Manufacturing for the month ended Revenues Net income from sales Expenses Total expenses Income before taxes Taxes Net income Now determine whether the company should release some of its retained earnings through dividends at this time by calculating the equity ratio. The equity ratio is (Round to three decimal places as needed.) Should the company release some of its retained earnings through dividends at this time? O A. Since the equity ratio is low, the company has too much debt. The company should not issue dividends so it can reduce its debt. OB. Since the equity ratio is high, the company has too much debt. The company should not issue dividends so it can reduce its debt. O C. Since the equity ratio is low, the company has a low amount of debt. The company should issue dividends to make its shareholders happy. D. Since the equity ratio is high, the company has a low amount of debt. The company should issue dividends to make its shareholders happy. Salvador Industries bought land and built its plant 20 years ago. The depreciation on the building is calculated using the straight-line method, with a life of 30 years and a salvage value of $49,000. Land is not depreciated. The depreciation for the equipment, all of which was purchased at the same time the plant was constructed, is calculated using declining balance at 15 percent. Salvador currently has two outstanding loans: one for $46,000 due December 31, 2020, and another one for which the next payment is due in four years. During April 2020, there was a flood in the building because a nearby river overflowed its banks after unusually heavy rains. Pumping out the water and cleaning up the basement and the first floor of the building took a week. Manufacturing was suspended during this period and some inventory was damaged. Due to inadequate insurance, this unusual and unexpected event cost the company $94,000, net. a. Complete the balance sheet and income statement, using any of the above information that is necessary. b. Show how information from financial ratios can indicate whether Salvador Industries can manage an unusual and unexpected event, such as the flood, without threatening its existence as a viable business. First, complete the balance sheet. Start by completing the assets portion and then the liabilities and owners' equity portions. (Round amounts to the nearest whole dollar.) Assets Current assets Cash $ 342,000 2,850,000 Accounts receivable Inventories 2,007,000 164,000 Prepaid services Total Current Assets Long-term assets Building 196,000 Less accumulated depreciation Equipment 495,000 Less accumulated depreciation Land 555,000 Total Long-Term Assets Total assets Liabilities and Owners' Equity Current Liabilities Accounts payable $ 952,686 Accrued taxes 27,500 Total Current Liabilities Long-term Liabilities Mortgage 1,220,000 319,000 Total Long-Term Liabilities Total Liabilities Owners' Equity Common shares 1,950,000 Total Owners' Equity Total Liabilities and Owners' Equity Now complete the income statement. (Round amounts to the nearest whole dollar. Use parentheses or a minus sign for a net loss.) Salvador Industries Income Statement for the Year Ended June 30, 2020 Revenues Gross income from sales S 8,640,000 Less 7,475,000 Net revenue from sales Expenses Depreciation Interest paid 72,000 234,000 94.000 Other expenses Total expenses Income before taxes Taxes at 45% Net Income (loss) b. Show how information from financial ratios can indicate whether Salvador Industries can manage an unusual and unexpected event, such as the flood, without threatening its existence as a viable business, Calculate the current ratio. The current ratio is (Round to two decimal places as needed.) Now calculate the acid-test ratio. The acid-test ratio is (Round to two decimal places as needed.) Now calculate the equity ratio. The equity ratio is (Round to two decimal places as needed.) Now find the retum-on-assets ratio. The return-on-assets ratio is % (Round to two decimal places as needed.) Use the financial ratios to indicate whether Salvador Industries can manage an unusual and unexpected event, such as the flood, without threatening its existence as a viable business. Select all that apply. A. The return-on-assets ratio is high, which means a loss from an extraordinary event would take only a small portion of its pre-tax income. O B. The return-on-assets ratio is low, which means a loss from an extraordinary event would take a large portion of its after-tax income. C. The equity ratio is slightly low, indicating reliance on debt financing, which makes it harder to cover a loss from an extraordinary event. D. The current and acid test ratios are high, which mean the company has considerable security in meeting obligations and losses from extraordinary events. E. The current and acid test ratios are both low, which means the company may not have the assets to cover obligations or losses from extraordinary events. F. The equity ratio is very high, indicating the company does not rely on debt financing, which makes it easy to cover a loss from an extraordinary event