I have a practice set due soon. and I just want to check my answers to make sure I'm doing it right.

Required #1

Using Be Prepared, Inc.s adjusted trial balance and prior periods balance sheet, prepare the following Financial Reports:

1. Multi-Step Income Statement for the month of January 2021 (see page 181 in your textbook for guidance).
2. Statement of Retained Earnings for the month of January 2021 (see page 479 in your textbook for guidance). Note: There are no prior period adjustments and all dividends declared and paid are cash dividends in the amount of $25,000.
3. Comparative Balance Sheet for the months of December 2020 and January 2021 (See page 616 in your textbook for guidance

Required #2

Use the Comparative Balance Sheet you prepared in Required #1, step #3 and the following additional information to prepare the Statement of Cash Flows for the month of January 2021. Use the indirect method to prepare the operating activities section.

• Issued 10,000 new shares of common stock in exchange for a Building. The stock was selling on the market at an average price of $10 per share on the date of sale and the par value of the stock was 50 cents.
• Purchased land with a cost $250,000. A down payment was made in the amount of $100,000 cash and a 10% 5-year note payable was signed for the difference.
• Purchased additional store equipment for $20,000 paying cash.
• The $15,000 notes receivable was related to the sale of merchandise inventory to a credit customer this period. Hint: The increase in notes receivable should be reported as an addition to the operating activities section of the statement of cash flows.
• Issued bonds with a face amount of $375,000 at 97. Hint: The amortization of the bond discount in the amount of $750 should be reported as an addition to the operating activities section.
• Used the cash proceeds from the bond issue to pay off the mortgage payable of $150,000.
• The company repurchased 20,000 shares of its common stock on the open market for $9 per share.
• The company reissued 10,000 of the treasury shares at a price of $18 per share.
• Issued 1,500 shares of preferred stock at $105 per share.
• Paid cash dividends of $25,000 to preferred and common stockholders.

Required #3

Prepare the following Ratios for January 2021:

1. Current Ratio
2. Acid-Test Ratio
3. Debt Ratio
4. Profit Margin Ratio
5. Gross Margin Ratio

Thank you so much!

Credits Debits 423,615.00 25,000.00 $ 540.00 100.00 15,000.00 7,200.00 8,000.00 500.00 1,600.00 375,000.00 500,000.00 72,000.00 70,000.00 17,500.00 95,000.00 15,800.00 65,000.00 30,000.00 12,500.00 5,500.00 325,000.00 375,000.00 10,500.00 Be Prepared Adjusted Trial Balance January 31, 2021 Account ID Account Description 1001 Cash 1021 Accounts Receivable 1022 Allowance for Doubtful Acc 1027 nterest Receivable 1031 Notes Receivable 1051 Merchandise Inventory 1101 Store Supplies 1111 Office Supplies 1125 Prepaid Insurance 1401 and 1411 Building 1412 Accum Dep: Building 1431 Office Equipment 1432 Accum Dep: Office Equipm 1451 Store Equipment 1452 scaum Derr: Store Equipma 1501 Patents 2001 Accounts Payable 2005 ncome Taxes Payable 2031 nterest Payable 2101 Notes Payable long term 2301 Bonds Payable 2303 Discount on Bonds Payable 3001 Preferred Stock 3011 Common Stock 3101 Paid in Capital In Excess of par: Prefer 3111 Paid in Capital In Excess of par: Com 3121 Paid in Capital Treasury Stock 3300 Retained Earnings 3351 Treasury Stock 4001 Sales Revenue 4002 Sales Discount 4003 Sales Returns & Allowances 4101 nterest Revenue 5001 Cost of Goods Sold 5010 nsurance Expense - General 5012 Repairs Expense: Office 5015 Depreciation Expense: Building - General 5020 Depreciation Exp: Office Eq 5025 Supplies Expense - Selling 5027 Utilities Expense: Office 5030 Office Salaries Expense 5035 Office Payroll Tax Expense 6005 Depreciation Exp: Store Eq 6010 Amortization Expense: Pat - General 6015 Sales Salaries Expense 6020 Sales Payroll Tax Expense 6022 Utilities Expense: Store 6025 Delivery Expense - General 6030 Repairs Expense: Store 6040 Bad Debts Expense - Selling 7001 interest Expense 210,000.00 120,000.00 61,250.00 295,000.00 90,000.00 850.00 90,000.00 275,575.00 750.00 5,250.00 50.00 125,500.00 300.00 2,100.00 9,000.00 2,500.00 2,400.00 1,100.00 25,000.00 7,000.00 800.00 800.00 20,000.00 5,600.00 1,200.00 1,500.00 750.00 2,000.00 6,500.00 1,906,565.00 1,906,565.00 Be Prepared Inc. Balance Sheet December 31, 2020 Liabilities Accounts Payable Income Taxes Payable Note Payable Mortgage Payable Total Liabilities 25,000 7,500 175,000 150,000 357,500 Assets Cash Accounts Receivable Merchandise Inventory Office Supplies Prepaid Insurance Land Building Accumulated Depreciation, Building Office Equipment Accumulated Depreciation, Office Equipment Store Equipment Accumulated Depreciation, Store Equipment Patents Total Assets 74,800 40,000 50,000 1,500 3,000 125,000 400,000 (63,000) 70,000 (15,000) 75,000 (15,000) 65,800 812,100 Stockholder's Equity Preferred Stock Common Stock Paid in Capital in Excess of par: Preferred Paid in Capital in Excess of par: Common Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity 52,500 115,000 61,250 200,000 25,850 454,600 812,100 $