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It is now September 30'h (and because of a loan covenant) you now must present nancial statements to the bankers who originated the $12,000 loan!

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It is now September 30'h (and because of a loan covenant) you now must present nancial statements to the bankers who originated the $12,000 loan! Yikes! [Remember that bankers expect to see receivables and payables on nancial statements presented to them! In otherwords, present your statements using accrual accounting] Here is what else you need to know. The bank charges 12% annual interest [1% per month} on the $12,000 loan that DPB acquired on July 15". During the quarter, all inventories were purchased for cash. And at the end of the quarter there was $38,000 of inventory still on the shelves of the store. Most sales were for cash but G.P. did accept a few credit sales from her friends (no payments received) and they owe DPB $11,500 as of September 30'\". DPB paid $30,000 for store rental on July 1St for six-months rent. Salaries are $6,000 for a months worth of services but DPB pays those earned salaries on the rst day of the following month. Salaries were earned for July, August, and September. The 'xtures, shelves, 8: equipment' were purchased on July 1.5t and are expected to last 5 years with no salvage value (use straight-line depreciation). Studying 'Modules 1, 2, & 3' in our textbook will be very helpful to you for this scenario analysis. {Please note that Dillon, Montana has a warm Summerthat transitions to a cald Fall that leads to a frozen Winter.) Required: Complete this assignment as an individual student. Submit your work for requirements shown below in PDF, xls, xlsx, doc, docx formats, to the listing in the Module: Week 1 in Canvas. 1. Within the 'nancial statements effects template' oriournal entries with TAccounts (your choice), record the cash transactions through September 30\"\" and any necessary adjustments at September 30th. 2. Prepare, for the bank, the income statement for the three months ended September 30m and the balance sheet at September 30'\". 3. Perform a ROA analysis for the rst three months of operations and give assessment. Hint: See Module 1 page 15 and 19 for example ofa ROA analysis from your textbook. 4. Give a thoughtful analysis of the outlook for DPB's future. This analysis must also include the reasonable perspective of banker who made the loan, employees who are waiting to be paid, and the business owner. Scenario Analysis #1: Dillon Paddle Boards On June 30th at 11:59 pm, G.P. Burdell started Dillon Paddle Boards (DPB) in Dillon, Montana, with a $65,000 investment. Her business sells paddle boards and accessories to tourists and 'outdoor enthusiasts' in western Montana. Below is the balance sheet at June 30th, 2021. Dillion Paddle Boards Balance Sheet June 30, 2021 Assets Cash $65,000 Liabilities + Equity Contributed Capital $65,000 With regular operations thus commenced, the following details came from her on-line banking 'app' on September 30th, 2021 (these transactions occurred between July 1st and September 30th): Withdrawals from Bank Account Salaries $12,000 Merchandise Inventory 82,000 Fixtures, Shelves, Equipment 32,000 Rent 30,000 Deposits to Bank Account Bank Loan (acquired 7/1 and 12,000 still outstanding 9/30) Customer collections 79,086 aggregated)

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