Guntash Garments Ltd was established by Emma Johnson, a fitness enthusiast who had a strong passion for wellness and exercise routines. After completing her fitness training certification, Emma identified a gap in the market for personalized workout plans and nutritional Guntash Garments Ltd was established by Emma Johnson, a fitness enthusiast who had a strong passion for wellness and exercise routines. After completing her fitness training certification, Emma identified a gap in the market for personalized workout plans and nutritional guidance. Prior to launching her fitness business, Emma had a successful career in marketing but decided to transition into the health and wellness industry. She invested her personal savings of $5,000 and secured a business loan of $3,000 from a local credit union to kickstart her fitness venture. Guntash Garments Ltd commenced operations in January 2021, offering personalized workout plans and nutritional consultations to individual clients. During the first six months of operations, the company incurred the following expenses: Purchased fitness equipment for $1,200 to facilitate client training sessions. Invested $500 in creating a website to promote services and provide online resources for clients. Hired a professional nutritionist for $800 to design personalized diet plans for clients. Spent $300 on marketing campaigns through social media platforms. The revenue for Guntash Garments Ltd during this period amounted to $9,500, earned through training sessions, consulting fees, and online program sales. Emma successfully attracted 30 clients, each paying an average of $300 for services. Now, in July 2021, Emma is assessing the company's financial performance and planning to expand her business further. She seeks assistance from an accounting consultant to evaluate the financial status of Guntash Garments Ltd and make informed decisions for future growth. As the accounting consultant, you have been asked to perform the following tasks: 1. Prepare Guntash Garments Ltd's balance sheet as of June 30, 2021. (5 points) 2. Create the income statement for Guntash Garments Ltd covering the period from January 1, 2021, to June 30, 2021. (5 points) 3. Analyze the financial data presented in the balance sheet and income statement to determine if the business can afford to pay Emma a salary of $2,000 per month. (5 points) 4. Guntash Garments Ltd intends to seek a business loan for expansion purposes. How can the financial statements be utilized to assess the company's eligibility for a loan, considering the bank's requirement of a healthy debt-to-equity ratio? (5 points) 5. Emma is contemplating whether to have the financial statements audited before presenting them to potential investors. Explain the significance of an audit to investors and the company. (5 points)