INSTRUCTIONS: STEP 1: INPUTS-Enter numbers in the yellow highlighted fields following the instructions. A/R: Enter a number between 20,000 and 30,000 ADA: 3% of the A/R number is uncollectible FA1: Enter a number between 200,000 and $250,000 UL: Enter a number of years between 4 and 8 AP: Enter a number between 5,000 and 10,000 NP: Enter a number between 60,000 and 80,000 BP: Enter a number between 50,000 to 70,000 (calculate 3% of your chosen A/R number) You will be calculating only 4 years of depreciation in Step 2, regardless of the number you choose. STEP 2: CALCULATIONS 2A) Calculate Depreciation on the FA1 number you chose, using the Declining Balance Method. Show your resulting calculation in the appropriate boxes in this spreadsheet Double Dedining Balance Method Depreciation Calculation Original Purchase Cost $ 2018 2019 0 years Useful life is Depreciation Expense Accumulated Depreciation Book Value 5 28) Calculate simple interest on your hote Payable at a rate of Interest is accrued monthly What is the interest Payable for 1 month What is the interest payable to date What is the total payable on the note including interest at Dec 31, 2021 2020 2021 3.50% The Note was taken out on May 1, 2021 and will be paid back on Jan 31, 2022 in full including all interest. It is currently Dec 31, 2021. Step 3: JOURNAL ENTRIES 3A) Complete the Journal Entry that would record your interest Payable on Notes on Dec 31, 2021 important to note that interest payable is recorded monthly, following the rules of the accrual method of accounting) Date Account Name 18) Complete the journal entry that would record your Notes Payable and interest at Jan 31, 2022 after the note has been settled in ful Date Account Name Dr. Cr. Dr. cr. Step 4: ANALYSIS Take a look at the resulting financial statements below and provide calculations for the following: 4A) What is your Receivables Turnover Ratio? 48) What is your Days to Collect? 4C) What is your Fixed Asset Turnover Ratio? 4D) What is your Current Ratio? 4E) What is your Times Interest Earned? 4F) Explain how your Receivables Turnover Ratio and Days to Collect are impacting your financials? Can this be improved? How? 4G) Based on your Fixed Assets Turnover Ratio and your Quick Ratio how would you assess the position of your company? Show your formula in this column for each of the ratios. 4H) Now consider the position of your company if cash was $3,000? What would your Quick Ratio be? Explain what this means, how this impacts your financial position, and what can be done to improve the situation if improvement is necessary: 41) After taking a look at your resulting financial statement below, how would you assess the overall financial position of your company? Using any 3 financial ratios, provide commentary on the profitability, liquidity and solvency of this company. Provide a recommendation on how the company can improve its financial position where needed