I need help with my homework assignment, I completed it but I am still uncertain about it. Here are the images for the assignment

Content * | 5123302 * *Course Hero X QUE ACCT + ASSIGN+4 (4).pdf * + X File | C:/Users/ayees/Downloads/ACCT+ASSIGN+4%20(4).pdf . . . 1 of 5 + | A) Read aloud | \\ Draw V Highlight Erase Assignment: Financial Statements of Business Organizations Scenario Jim Connor is the owner of Wave Riders, a surf shop located in West Palm Beach, Florida. Jim has just received his end of the year financial statements from his accountant. When he sees his gross and net income he is dismayed. With almost $250,000 in gross profit he just doesn't understand why he is always short on cash to pay his employees and suppliers. One of his largest suppliers of surf boards notified him just last month that they would no longer extend him credit and he would have to pre-pay all of his orders. He puts a call into his accountant to set up a meeting with her to discuss the financial health of his business. Questions Part 1 1. Using the financial statements provided, calculate the 12 financial ratios discussed in your text using the financial information that is provided below for Wave Riders, 2. Looking at these ratios, are there any of them that look suspicious? If so, which ratios are they and what about them do you believe is cause for concern? Part 2 1. Using the industry ratios that have been provided, compare Wave Rider's ratios with those for the industry. What "red flags" do you see when making this comparison? 2. What do you think might be causing the deviations that you see between Wave Riders ratios and the industry ratios? Part 3 1. What recommendations would you make to Jim to help him improve the financial performance of Wave Riders in the future? Prepare a memo to Jim outlining your recommendations, making certain to include your reasons for the recommendation (i.e. ratio analysis and/or comparison to industry ratios). PDF ACCT+ASSIGN+4 (4).pdf Open file . . . Show all X Type here to search O MN EPIC 2:37 PM ^ )9/13/2020Content * | 5123302 * *Course Hero X DD ACCT +ASSIGN+4 (4).pdf * + X File | C:/Users/ayees/Downloads/ACCT +ASSIGN+4%20(4).pdf . . 2 of 5 + 2 | A) Read aloud | \\ Draw V Highlight Erase Financial Statements Wave Riders Income Statement For the year ended December 31, 20xx Merchandise Sales $500,000 Cost of Goods Sold $255,000 Gross Profit $245,000 Wage Expense $140,000 Rent Expense $45,000 General and Administrative $45,000 Total Expenses $230,000 Earnings Before Interest & Taxes (EBIT) $15,000 Interest $5,000 Income before tax $10,000 Tax (@ 25% rate) $2,500 Net Income/(Loss) $7,500 Wave Riders Statement of Owner's Equity For the year ended December 31, 20XX Beginning Capital SO Owner Contributions $5,000 Net Income/(Loss) $7,500 $12,500 Owner Withdrawals Ending Capital $12,500 Assignment: Financial Statements of Business Organizations by Linda Williams in Accounting for Managers by Lumen Learning is licensed under CC-BY 4.0 PDF ACCT+ASSIGN+4 (4).pdf Show all X Open file . . . Type here to search O EPIC 2:38 PM ^ (9/13/2020Content * | 5123302 * *Course Hero X DE ACCT +ASSIGN+4 (4).pdf * + X File | C:/Users/ayees/Downloads/ACCT+ASSIGN+4%20(4).pdf . . 3 of 5 - + 2 | A) Read aloud | \\ Draw V Highlight Erase Wave Riders Balance Sheet As of December 31, 20Xx Asset Current Assets Cash and Cash Equivalents $29,500 Accounts Receivable $10,000 Merchandise Inventory $100,000 Prepaid Expenses $7,500 Total Current Assets $147,000 Property, Plant, and Equipment $5,000 Total Assets $152,000 Liabilities Current Liabilities Accounts Payable $74,250 Wages Payable $10,250 Total Current Liabilities $84,500 Long-Term Debt $55,000 Total Liabilities $139,500 Owner's Equity $12,500 Total Liabilities and Owner's Equity $152,000 Show all X PDF ACCT+ASSIGN+4 (4).pdf Open file . . . EPIC 2:38 PM Type here to search O ^ (9/13/2020Content * | 5123302 * *Course Hero X QUE ACCT+ ASSIGN+4 (4).pdf * + X File | C:/Users/ayees/Downloads/ACCT +ASSIGN+4%20(4).pdf . . 4 of 5 - + | A) Read aloud | \\ Draw V Highlight Erase Wave Riders Statement of Cash Flows For the year ended December 31, 20Xx Cash provided by operating activities Net Income (loss) $7,500 Changes in operating assets & liabilities Inventories ($100,000) Accounts Receivables $10,000) Accounts Payable $10,250 Accrued expenses $7,500 Cash provided by (used by) operations ($85,000) Cash provided by investing activities Purchases of fixed assets ($5,000) Cash provided by (used by) investing ($5,000) Cash provided by financing Long-term borrowing $55,000 Owner contributions $5,000 Payment of Debt and Financing Costs ($5,000) Cash provided by (used by) financing $55,000 Change in cash ($35,000) Beginning cash balance SO Ending cash balance ($35,000) Assignment: Financial Statements of Business Organizations by Linda Williams in Accounting for Managers by Lumen Learning is licensed under CC-BY 4.0 PDF ACCT+ASSIGN+4 (4).pdf Open file . . . Show all X Type here to search O EPIC 2:38 PM ^ (9/13/2020Content * | 5123302 * *Course Hero X QUE ACCT + ASSIGN+4 (4).pdf * + X File | C:/Users/ayees/Downloads/ACCT +ASSIGN+4%20(4).pdf . . 5 of 5 - +2 | A) Read aloud | \\ Draw V Highlight Erase Assignment: Financial Statements of Business Organizations by Linda Williams in Accounting for Managers by Lumen Learning is licensed under CC-BY 4.0 Industry Ratios Liquidity & Solvency Ratios Current Ratio 2.1 Quick Ratio 0.95 Debt Ratio 1.05 Debt to Net Worth Ratio 8.5 Times Interest Earned Ratio 4.2 Return on Equity (ROE) 5.25 Operating Ratios Average Inventory Turnover Ratio 5.85 Average Receivables Turnover Ratio 10 Average Collection Period Ratio 36.5 Payables Turnover Ratio 5.8 Average Payable Period Ratio 2.9 Net Sales to Total Assets Ratio 3 3 Profitability Ratios Net Profit on Sales Ratio 4.8% Net Profit to Assets Ratio 4.55% Net Profit to Equity Ratio 1.8 PDF ACCT+ASSIGN+4 (4).pdf Open file . . . Show all X Type here to search O EPIC 2:38 PM ^ (9/13/2020