Look at the financial statements. After the results from questions $1-4,$

write a paragraph with your analysis on each of the foltowing:

Income Statement

Balance Sheet

Statement of Owner's equity

Statement of Cash flow

Lola's Company

Balance Sheet

December $319$t$,2020$

Assets

Cash and Cash Equivalents $$100,000$

Accounts Receivable $$150,000$

Inventory $$200,000$

Prepaid Expenses $$50,000$

Property, Plant and Equipment $$500,000$

Total Assets $$1,000,000$

Liabilities

Accounts Payable $$100,000$

Notes Payable $$200,000$

Accrued Expenses $$50,000$

Total Liabilities $$350,000$

Owner's Equity

Common Stock $$250,000$

Retained Earnings $$400,000$

Total Owner's Equity $$650,000$

Total Liabilities and Owner's Equity $$1,000,000$

Statement of Owner's Equity

December $31$st$,2020$

Owner's Equity at Beginning of Year

$$400,000$

Net Income for the Year

$$130,000$

Issuance of Common Stock

$$50,000$

Dividends Paid

$($ $$30,000)$

Owner's Equity at End of Year

$$550,000$

Lola's Company

Statement of Cash Flow

December $31$st$,2020$

Cash Flows from Operating Activities

Net Income $$100,000$

Depreciation Expense $$$50,000$

Increase in Accounts Receivable $($ $$30,000)$

Increase in Inventory $,$$$20,000)$

Decrease in Prepaid Expenses

$$10,000$

Net Cash Provided by Operating Activities

Cash Flows from Investing Activities

Purchase of Property, Plant and Equipment

$($ $$100,000)$

Net Cash Used in Investing Activities

$($ $$100,000)$

Cash Flows from Financing Activities

Proceeds from Isguance of Common Stock

$$50,000$

Repayment of Notes Payable

$($ $$30,000)$

Net Cash Provided by Financing Activities

$$20,000$

Net Increase in Cash and Cash Equivalents

$$30,000$

Income Statement

December $31$ st$,2020$

Revenue

Sales Revenue $$500,000$

Interest Income $$10,000$

Total Revenue

$$510,000$

Expenses

Cost of Goods Sold $($$$200,000)$

Depreciation Expense $($ $$50,000)$

Salaries and Wages Expense $($ $$100,000)$

Rent Expense $($ $$30,000)$

Total Expenses

$($ $$380,000)$

Net Income

$$130,000$