Jemmi is the owner of a company that manufactures soccer-gear prod-

ucts. The accounts information for 2019 is as follows: gross profit is $260,000,

near-cash is $1,640, the amount of accounts payable is $10,000. Unfinished and

unsold products are worth $60,000, accumulated depreciation is 15% of total gross

fixed assets. There is an outstanding 15-Year loan of $55,000, common stock at

par is $77,700 and retained earnings at the end of the year are $165,730. Fixed

cash operating expenses, variable operating expenses and depreciation are $21,000,

$16,000 and $15,000 respectively. Additionally, regarding stock, the paid in capi-

tal in excess of par is $0.15 per common stock. The number of common stock is

74,000. On the other hand, the cost of goods sold is $100,000. The preferred stock

dividend rate is 2% for a face-value stock value of $140,000. A 3-months term bank

loan of $4,110 is going to be paid off next month. Lands, buildings and equipment

were valued $400,000. Interest expenses are $1,000 and the tax rate is 21%. The

company has some assets as stocks and a 1-year-maturity bond worth $51,000 in

total. Finally, the amount of money that customers currently owe to the company

for goods that were purchased on 3-months credit is $11,000.

(a) Construct the income statement for this company at the end of the year 2019.

(b) Construct the balance-sheet statement for this company at the end of the year

2019.

(c) Calculate ROA and the quick ratio.