In this paper, in addition to presenting the computed answers, please also discuss how you arrived at each answer the accounting problem asks. The accounting problem presents a companys balance sheet, income statement, and statement of cash flows for a theoretical company, Pollys Pet Products. Each of these statements has blank lines. Determine the values that would be appropriate for each blank line. Provide a narrative of how you arrived at each value. Include in this narrative an explanation of: the financial statement being completed; the account being valued; its relationship to the other financial data. For example, if the accounts payable (AP) line was missing, describe what a balance sheet is and explain that you can derive the AP value based on knowing all the other values of the current liabilities section. Then explain what an account liability is, as well as why it would belong in the current liabilities section of the balance sheet. Finally, analyze, evaluate, and develop a conclusion about the companys performance based on the completed statements. Please refer to the income statement, balance sheet, and statement of cash flows of Pollys Pet Products. Superior papers will mention and explain the following elements when responding to the assignment question: Provide correct balances for the blank financial account lines. Define the financial statement being completed. Discuss how the values were determined. Define and explain each account line that was completed. Analyze, evaluate, and develop conclusions about the companys performance based on the financial information.

Polly's Pet Products

Balance Sheet as of December 31, 2018

ASSETS

CURRENT ASSETS

Cash

Accounts receivable

50,000

Other assets

25,000

Total current assets

LONG TERM ASSETS

Fixed Assets

75,000

TOTAL ASSETS

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable

75,000

Accrued expenses

Income tax payable

5,000

Current portion of notes payable

12,000

Deferred income taxes

1,500

Total current liabilities

123,500

LONG TERM LIABILITIES

Notes payable (long term)

TOTAL LIABILITIES

161,500

STOCKHOLDERS' EQUITY

Common stock 5,000

Additional paid-in capital 15,000

Retained Earnings

Total stockholders' equity

TOTAL LIABILITIES AND STOCKHOLDERS EQUITY

Polly's Pet Products

Income Statement as of December 31, 2018

Revenues 650,000

Operating Costs

Gross Profit 205,000

General and Administrative Expenses 75,000

Operating Income

Other Expense 60,000

Income Before Provision for Income Taxes

Provision for Income Taxes 5,000

Net Income

Retained Earnings, Beginning Balance 103,500

Net Income

Retained Earnings, Ending Balance

Polly's Pet Products

Statement of Cash Flows as of December 31, 2018

Cash Flows from Operating Activities

Cash received from customers

600,000

Cash paid out to suppliers and employees

Interest paid

(5,000)

Taxes paid

(10,000)

Net cash provided by operating activities

185,000

Cash Flows from Investing Activities

Purchase of fixed assets

(25,000)

Net cash used in investing activities

(25,000)

Cash Flows from Financing Activities

New loans

50,000

Repayments on loans

(45,000)

Issuance of common shares of stock

5,000

Net cash provided by financing activities

Net change in Cash

Cash balance, beginning of year

30,000

Cash balance, end of year