Financial Management: Analysis on financial statement

Based on the above statement of earnings, discuss, as an investor, whether to agree or disagree to the request for funds to The Italian Bakery.

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Require about 300-450 words. DO NOT COPY AND PASTE. please be precise to the question and answer in OWN WORDS.

Revenue EXHIBIT 1: THE ITALIAN BAKERY-STATEMENT OF EARNINGS (FOR YEARS ENDING DECEMBER 31) 2014 2013 $ 1,074,553 165,481 1,023,384 161,695 909,072 861,689 23,963 29,804 20,325 20,325 75,000 75,000 584,064 549,120 80,756 80,746 10,763 10,837 20,350 20,350 7,837 7,445 5,867 5,482 6,374 5,768 1,736 1,787 837,035 806.664 72,037 55,025 12,364 15.043 59,673 39,982 12,531 8,396 $ 47.142 $ 31,586 $ EXHIBIT 2: THE ITALIAN BAKERY-STATEMENT OF RETAINED EARNINGS (FOR YEARS ENDING DECEMBER 31) 2014 2013 2012 62,453 47,142 (35,000) 74.595 55,867 31,586 (25,000) 62.453 Total sales Cost of goods sold Gross profit Operating expenses Administrative expenses Amortization Management salary Wages Utilities Advertising Insurance Telephone and Internet Fuel Repairs Miscellaneous Total operating expenses Operating income Interest expense Net earnings before taxes Income taxes Net income after taxes Source: Company files. Beginning retained earnings (Add) Net income (Less) Dividends Ending retained earnings Source: Company files. $ $ $ $ $ 2012 $ $ 984,023 144,651 839,372 28,241 19,349 60,000 514,176 75,874 10,276 19,287 6,854 5,093 6,164 1,884 747,198 92,174 10,167 82,007 17,221 64,786 26,082 64,785 (35,000) 55,867 Revenue EXHIBIT 1: THE ITALIAN BAKERY-STATEMENT OF EARNINGS (FOR YEARS ENDING DECEMBER 31) 2014 2013 $ 1,074,553 165,481 1,023,384 161,695 909,072 861,689 23,963 29,804 20,325 20,325 75,000 75,000 584,064 549,120 80,756 80,746 10,763 10,837 20,350 20,350 7,837 7,445 5,867 5,482 6,374 5,768 1,736 1,787 837,035 806.664 72,037 55,025 12,364 15.043 59,673 39,982 12,531 8,396 $ 47.142 $ 31,586 $ EXHIBIT 2: THE ITALIAN BAKERY-STATEMENT OF RETAINED EARNINGS (FOR YEARS ENDING DECEMBER 31) 2014 2013 2012 62,453 47,142 (35,000) 74.595 55,867 31,586 (25,000) 62.453 Total sales Cost of goods sold Gross profit Operating expenses Administrative expenses Amortization Management salary Wages Utilities Advertising Insurance Telephone and Internet Fuel Repairs Miscellaneous Total operating expenses Operating income Interest expense Net earnings before taxes Income taxes Net income after taxes Source: Company files. Beginning retained earnings (Add) Net income (Less) Dividends Ending retained earnings Source: Company files. $ $ $ $ $ 2012 $ $ 984,023 144,651 839,372 28,241 19,349 60,000 514,176 75,874 10,276 19,287 6,854 5,093 6,164 1,884 747,198 92,174 10,167 82,007 17,221 64,786 26,082 64,785 (35,000) 55,867