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Is the company operating profitably (what percent of revenues result in profitet income)? How well poised are they to meet liabilities (discuss liquidity and current
Is the company operating profitably (what percent of revenues result in profitet income)? How well poised are they to meet liabilities (discuss liquidity and current ratio)?
A Company Income Statement For Month ending 06/30/20XX \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|l|}{ Revenues } \\ \hline service & $ & 5,525.00 \\ \hline Total Revenues & $ & 5,525.00 \\ \hline \multicolumn{3}{|l|}{ Operating Expenses: } \\ \hline rent & $ & 1,195.00 \\ \hline business license expense & $ & 250.00 \\ \hline advertising expense & $ & 250.00 \\ \hline wages expense & $ & 650.00 \\ \hline telephone expense & $ & 155.00 \\ \hline repairs expense & $ & 210.00 \\ \hline depreciation expense & $ & 250.00 \\ \hline & & \\ \hline Total Operating Expenses: & & 2,960.00 \\ \hline Net Income & & 2,565.00 \\ \hline \end{tabular} Company Name Statement of Owner's Equity Period Ending 06/30/20XX \begin{tabular}{|c|c|c|c|} \hline \multicolumn{2}{|c|}{ Beginning Capital on 6/01/20XX } & $ & - \\ \hline \multicolumn{4}{|l|}{ Increases to capital } \\ \hline & Net income/loss: & $ & 2,565.00 \\ \hline & Owner Contributions & $ & 50,000.00 \\ \hline & Subtotal: & $ & 52,565.00 \\ \hline \multicolumn{4}{|l|}{ Decreases to capital } \\ \hline & Owner Draws & $ & (1,000.00) \\ \hline \multicolumn{2}{|c|}{ Ending Equity as of 06/30/20XX} & $ & 51,565.00 \\ \hline \end{tabular} A Company Balance Sheet As of June 30,20XX Assets Current Assets: \begin{tabular}{|l|r|} \hline Cash & 50,650.00 \\ \hline Accounts Receivable & 2,975.00 \\ \hline Office Supplies & 750.00 \\ \hline prepaid rent & 7,170.00 \\ \hline prepaid insurance & 750.00 \\ \hline Total Current Assets & 62,295.00 \\ \hline \end{tabular} Non-Current Assets: \begin{tabular}{|l|r|} \hline vehicle & 15,000.00 \\ \hline accumulated depreciation & (250.00) \\ \hline Total Non Current/Fixed Assets & 14,750.00 \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline Total Assets: & 77,045.00 \\ \hline \end{tabular} Liabilities and Owners' Equity Current Liabilities: \begin{tabular}{|l|r|} \hline accounts payable & 155.00 \\ \hline wages payab;e & 325.00 \\ \hline Total Current Liabilities & 480.00 \\ \hline Long Term Liabilities: & 25,000.00 \\ \hline Notes Payable & 25,000.00 \\ \hline Total Long Term Liabilities: & 25,480.00 \\ \hline \multicolumn{2}{|l|}{} \\ \hline Total Liabilities: \end{tabular} Owner's Equity \begin{tabular}{|c|c|} \hline capital & 51,565.00 \\ \hline Total Equity & 51,565.00 \\ \hline Total Liabilities \& Equity & 77,045.00 \\ \hline \end{tabular}Step by Step Solution
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