Jim Johnson has a well-established Family Style pizza restaurant in Rockville, a small town of 35,000. His main competition is Pizza Hut, Dominos, Little Caesars, and Papa Johns. Jims specialty pizza is a hand tossed pizza with Jims special pizza sauce, loads of mozzarella cheese and choice of peperoni, beef, sausage, barbeque chicken or shrimp. Jim currently rents a 2,500 square foot building in the Old Town section of Rockville. Jim is opened every day except Sunday and ten additional holidays. Seating capacity of the restaurant is 65. Jims specializes in one size pizza his 18 hand tossed with his special sauce. Customers come from miles around to taste his pizza. In addition to his pizzas Jim offers salad, soda, tea, and wine. His cost to produce each pizza includes dough $.55, sauce $1.98, cheese $2.05, meat averages $2.19. Jim sells his pizzas for $14.95 each, salads at $4.95, wine at $4.50/glass and soda at $1.98/glass with free refills. Cost for these additional items include soda $.25/glass, salads $1.97 each and wine at $1.78 per glass. On a typical day Jim sells 65 pizzas, 25 salads, 60 soft drinks and 20 glasses of wine. Jim does not offer take-out or delivery. Operating costs include rent at $2,500 per month, insurance on the business $4,250 per year, electricity for lights and operation $355/ month, natural gas for heat and pizza ovens $435/month, lease on dishwasher $210/month, business license $750 per year, phone, and internet $310 per month. Accounting $225 per month, replacement for plates, silverware, and glasses $200 per month, liquor license $800 per year. Jim owns a vehicle valued at $28,000. Vehicle gas averages $110 per month Jim has one full time employee at $20/hour, two part-time employees @ $15/ hour working 20 hours per week each and a dishwasher at $10/hour working 12 hours per week. Annual depreciation expense is $2,500. Jim has a small operating loan of $25,000 at 6% interest with five years remaining Second National Bank. His tax rate is 26%. Jim maintains an inventory of $3, 800, he has operating cash of $15,000 and savings of $38,000. Accumulated depreciation is $18,000. Tables, chairs, and dining equipment is $47,000, kitchen equipment including coolers, pizza ovens, pots and pans and other items $38,000. Accounts payable average $4,600. Accounts receivable average $800. QUESTIONS: 1. Develop a profit and loss statement for Jim 2. Develop a balance sheet for Jim 3. What is Jims EBT profit/loss amount? 4. What percent of sales is Jims EBT? 5. Does Jim have a profitable business? After reviewing the P & L statement, balance sheet and break- even amount, describe in a narrative of approximately 500 to 750 words how Jims Business is doing?