income statement

Revenue
Bakery Sales		60,000.00
Merchandise Sales		221.00
Expenses
Cost of Goods Sold		157.6
License Expenses		375.00
Telephone Expenses		90.00
Wages Expenses		1,956.00
Rent Expenses		4,500.00
Misc. Expenses		250.00
Baking Supplies Expenses		19,400.00
Insurance Expenses		200.00
Depreciation Expenses		208.33
Misc. Supplies Expenses		550.00
Selling Expenses
Adverrtising Expenses		200.00
Interest expense		150.00
Total		28,036.93
Net Income		32,184.07

Balnce Statement

Assets					Liabilities and Owners' Equity
	Current Assets					Common Stock	$20,000.00
	Cash		47,896.75			Retained earnings	$29,184.07
	Baking Supplies		$1,100.00
	Prepaid Insurance Expense		$1,000.00			Notes Payable	$10,000.00
	Accounts Recievable		$10,521.00			Wages payable	$480.00
	Prepaid Rent		$1,500.00			Interest payable	$150.00
	Misc. Supplies		$50.00			Accounts Payable	7000
	Merchandise Inventory		$175.65
	Total		$62,243.40
						Total	$66,814.07
	Baking Equipment	$5,000.00
	Accumulated Depreciation	-$208.33	$4,791.67
	Total Assests		$67,035.07

1. What basis of accounting is used? Why? How does it support responsible practices within the company? 2.Why? How does it support responsible practices within the company? 3.what strategies is the business using to ensure responsible accounting practices? Why have these strategies been selected? 4. when are entries made, how often are statements produced and reviewed, and why? 5. Describe the internal controls for cash that are in place. 6. analyze the results of operations. What do these results tell a business? What is the company doing well and what changes might be needed? What do the financial statements say about the strengths and weaknesses of the companys financial position? Be sure to discuss the role of ratio analysis. 7. is the company going in the right direction? Why or why not? What opportunities can the company explore given its strengths and weaknesses? How would these be beneficial? Support your analysis with the information in the financial statements.