Examine these first year accounts of a start up business. The business is an app that allows people to find accomodation with empty nesters.

Task:

Identify and explain all the possibile ratios. Eg: Liquidity Ratios, Profitability Ratios, Leverage and Efficiency Ratios by examining the figuers in each of the accounts.

Final:

Conclude by discussing the status of the business.

\begin{tabular}{|l|r|r|} \hline Balance Sheet & & \\ \hline Assets & Amount & Amount \\ \hline Current assets & & \\ \hline Cash and cash equivalents & 39,020.00 & \\ \hline Deposits and advances & 5,000.00 & \\ \hline Current assets & & 44,020.00 \\ \hline & & \\ \hline Office equipment & 10,000.00 & \\ \hline Less: Accumulated depreciation & (1,000.00) & \\ \hline & & 9,000.00 \\ \hline Intangible assets & & 9,750.00 \\ \hline Total Assets & & 62,770.00 \\ \hline & & \\ \hline Liabilities and Stockholder's Equity & & \\ \hline Current liabilities & & \\ \hline Accrued expenses & 6,600.00 & \\ \hline Non- Current liabilities & & \\ \hline Loan payable & 100,000.00 & \\ \hline Total Liabilities & & 106,600.00 \\ \hline Stockholder's Equity & & \\ \hline Common Stock & 100,000.00 & \\ \hline Retained Earnings & (143,830.00) & \\ \hline Stockholder's Equity & & (43,830.00) \\ \hline Total Liabilities and Stockholder's Equity & & 62,770.00 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline Statement of Profit and Loss & \\ \hline Sales & Amount \\ \hline Less: Operating Expenses: & 85,960.00 \\ \hline Salaries Expense & \\ \hline Rent Expense & 63,000.00 \\ \hline Insurance & 36,000.00 \\ \hline Internet and communication & 7,000.00 \\ \hline Utilities Expense & 7,600.00 \\ \hline Legal Expense & 3,000.00 \\ \hline Advertising Expense & 2,500.00 \\ \hline Sundry expenses & 90,000.00 \\ \hline Travel expenses & 1,200.00 \\ \hline Bank charges & 12,000.00 \\ \hline Depreciation Expense & 240.00 \\ \hline Amortisation Expense & 1,000.00 \\ \hline Total Operating Expenses & 250.00 \\ \hline Operating income & 223,790.00 \\ \hline Interest Expense & (137,830.00) \\ \hline Income before taxes & 6,000.00 \\ \hline Income Taxes Expense & (143,830.00) \\ \hline Net Income & - \\ \hline \hline \end{tabular}