Question
Johns Jungle Gyms is an indoor play area for children. Parents bring their toddlers to play on germ-covered slides, ladders, ball pits, monkey bars and
Johns Jungle Gyms is an indoor play area for children. Parents bring their toddlers to play on germ-covered slides, ladders, ball pits, monkey bars and other pieces of equipment. The following account balances relate to the companys October 31, 2024 month end financial statements: Retained earnings (Oct 1, 2024) 118,090 Admission revenue 25,000 Cash 14,000 Mortgage 178,000 Accounts payable 5,000 Buildings 225,000 Wages payable 2,000 Wages expenses 6,000 Repair expenses 1,500 Insurance expenses 3,000 Account receivable 500 Common shares (Oct 1, 2024) 10 Dividends 200 Equipment 75,000 Depreciation 2,600 Utilities expense 300 expense There were no common shares issued or purchased during the month. Required: a.) Prepare an income statement for the month ended October 31, 2024. b.) Prepare a statement of changes in equity for the month ended October 31, 2024. c.) Prepare a balance sheet as at October 31, 2024. d.) Based on your financial statements, compute: i. The current ratio ii. The debt ratio iii. The equity ratio iv. Profitability ratio v. Asset usage Ratio
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