History: The company began operations in Windsor Ontario in 2000 as a try out facility and then in 2002 began producing parts and became a full injection molder. The company has 13 presses ranging from 100T to 3500T. They do work for the automotive and nonautomotive industry. The make-up is 85% automotive and 15% non-automotive. In 2008 the company was almost bankrupt because of the financial crisis. All work was terminated. Nick Wue did not get paid for 2 years after the meltdown. Nick and Peng lent additional monies through shareholder loans to help the company and Jeff bought the shares of one shareholder who left during the financial difficulties. Ownership is a group of 5 individuals who have many years of experience in the industry. Nick Wue owns 53% of the company, and his son Jeff Wue owns 8%, Peng Bigoli owns 14%, Danko Loves owns 17\%, and Ralph Scared owns 8%, he is an American citizen. Nick is 73 years old. Jeff is 35 years old with a spouse who is a medical doctor. Peng is 55 years old, with spouse owns the shares and does not like to sign any documents. Danko is 57 years old, and his spouse owns the shares. They have had medical issues and financial problems. Ralph Scared is 55 years old, and his wife owns the shares. She is a constant problem with the ownership and refuses to sign any legal documents Pappy Plastics Inc. (PPI) makes several plastic products for the automotive industry. The previous two years of statements are provided for reference as Exhibit 1. You will also find a trial balance sheet for the current year as Exhibit 2. Exhibit 3 are notes from the financial statements. The company has brought in their accounting firm, Laugh Out Loud LLP Charted Accountants (LOL) to look at their books. The reason is their bank No Work Credit Union, (NCU), is concerned. Current Environment: The company is still struggling with the slowdown due to COVID-19, and in addition the industry constraints on material have put significant pressure on the company's viability. Manufacturers of the resin which is a key ingredient in plastic injection molding have instituted a force majeure, which has made the company buy inventory in advance due to potential shortages. Another factor is chip shortages which effects the company 2IP a e indirectly as parts are not being made for the cars until the companies can secure the necessary chips to produce a full vehicle. These delays cause significant problems in their expected sales versus actual sales. Summary Lyndsey Dibbs, the principal at LOL has asked you, 3560 Accountant to prepare the balance sheet and income statement for the current period. Once you have completed the statements then use that information to compare to the previous years to determine what types of issues PPI is having and what are some potential solutions to the company. Exhibit 3 provides some additional information when reviewing the information. You will need to include a SWOT analysis. Exhibit 1 Comparative Balance Sheet 2021 and 2020 Exhibit 1 (continued) Comparative Income Statement 2021 and 2020 Exhibit 2 Trial Balance April 30, 2022 Exhibit 2 (continued) Trial Balance April 30, 2022 Exhibit 3 Notes 7P a 8 e Pappy Plastics Inc. Notes to Financial Statements 1. Due from Related parties and foreign exchange(FX) 2. Taxes Payable at a rate of 15.0% for Income under $500,000 3. Other Revenue: consists of scrap revenue, miscellaneous revenue, fees and new molds. Other Expenses: include building of molds, and general expenses History: The company began operations in Windsor Ontario in 2000 as a try out facility and then in 2002 began producing parts and became a full injection molder. The company has 13 presses ranging from 100T to 3500T. They do work for the automotive and nonautomotive industry. The make-up is 85% automotive and 15% non-automotive. In 2008 the company was almost bankrupt because of the financial crisis. All work was terminated. Nick Wue did not get paid for 2 years after the meltdown. Nick and Peng lent additional monies through shareholder loans to help the company and Jeff bought the shares of one shareholder who left during the financial difficulties. Ownership is a group of 5 individuals who have many years of experience in the industry. Nick Wue owns 53% of the company, and his son Jeff Wue owns 8%, Peng Bigoli owns 14%, Danko Loves owns 17\%, and Ralph Scared owns 8%, he is an American citizen. Nick is 73 years old. Jeff is 35 years old with a spouse who is a medical doctor. Peng is 55 years old, with spouse owns the shares and does not like to sign any documents. Danko is 57 years old, and his spouse owns the shares. They have had medical issues and financial problems. Ralph Scared is 55 years old, and his wife owns the shares. She is a constant problem with the ownership and refuses to sign any legal documents Pappy Plastics Inc. (PPI) makes several plastic products for the automotive industry. The previous two years of statements are provided for reference as Exhibit 1. You will also find a trial balance sheet for the current year as Exhibit 2. Exhibit 3 are notes from the financial statements. The company has brought in their accounting firm, Laugh Out Loud LLP Charted Accountants (LOL) to look at their books. The reason is their bank No Work Credit Union, (NCU), is concerned. Current Environment: The company is still struggling with the slowdown due to COVID-19, and in addition the industry constraints on material have put significant pressure on the company's viability. Manufacturers of the resin which is a key ingredient in plastic injection molding have instituted a force majeure, which has made the company buy inventory in advance due to potential shortages. Another factor is chip shortages which effects the company 2IP a e indirectly as parts are not being made for the cars until the companies can secure the necessary chips to produce a full vehicle. These delays cause significant problems in their expected sales versus actual sales. Summary Lyndsey Dibbs, the principal at LOL has asked you, 3560 Accountant to prepare the balance sheet and income statement for the current period. Once you have completed the statements then use that information to compare to the previous years to determine what types of issues PPI is having and what are some potential solutions to the company. Exhibit 3 provides some additional information when reviewing the information. You will need to include a SWOT analysis. Exhibit 1 Comparative Balance Sheet 2021 and 2020 Exhibit 1 (continued) Comparative Income Statement 2021 and 2020 Exhibit 2 Trial Balance April 30, 2022 Exhibit 2 (continued) Trial Balance April 30, 2022 Exhibit 3 Notes 7P a 8 e Pappy Plastics Inc. Notes to Financial Statements 1. Due from Related parties and foreign exchange(FX) 2. Taxes Payable at a rate of 15.0% for Income under $500,000 3. Other Revenue: consists of scrap revenue, miscellaneous revenue, fees and new molds. Other Expenses: include building of molds, and general expenses