Lydia Trottier has prepared baked goods for sale since 2001 . She started the baking business in her home and has been operating in a rented building with a storefront since 2006. Lydia incorporated the business as MLT Inc on January 1, 2023, with an initial share issue of 1,000 common shares for $2,500. Lydia is the principal shareholder of MLT Inc. Sales have increased by 30% annually since operations began at the present location, and additional equipment is needed for the continued growth that is expected. Lydia wants to purchase some additional baking equipment and to finance the equipment through a long-term notefrom a commercial bank. Fidelity Bank \& Trust has asked Lydia to submit a statement of income for MLT for the first five months of 2023 and a statement of financial position as at May 31, 2023. Lydia assembled the following information from the corporation's cash basis records to use in preparing the financial statements that the bank wants to see: 1. The bank statement showed the following 2023 deposits through May 31 : 2. The following amounts were dibursed through May 31:2023: 2. The following amounts were disbursed through May 31.2023: 3. Unpaid invoices at May 31, 2023, were as follows: 4. Accounts receivable records showed uncollected sales of $4,336 at May 31,2023. 5. Raw materials inventory costing $2,075 was on hand at May 31.2023. There were no materials in process or finished goods on hand at that date. No raw materials were on hand or in process and no finished goods were on hand at January 1,2023. 6. The note for the three-year bank loan is dated January 1, 2023, and states a simple interest rate of 8%. The loan requires quartprly payments on April 1, July 1, October 1, and January 1. Each payment is to consist of equal principal payments [$2,880+(34)=$240] plus accrued interest since the last payment. 7. Employees have been paid through May 25, 2023, and are due an additional \$270 on May 31, 2023 . 8. Equipment costing $3,600 was purchased on Japuary 2,2023 , and has an estimated useful life of five years with no residual value. Straight-line depreciation is used. 9. Rent was paid for six months in advance on January 2,2023. 10. Aone-year insurance policy was purchased on January 2. 2023. 11. MLT is subject to an income tax rate of 20%. No tax instalments have been paid. 12. Payments and collections from the unincorporated business through December 31.2022, were not included in the 12. Payments and collections from the unincorporated business through December 31,2022 , were not included in the corporation's records, and no cash was transferred from the unincorporated business to the corporation. using the accraar basis of accounting, prepare a statement of income for the five months ended May 31. 2023. (Round eamings p share value to 2 decimal ploces, e. 5.27 and other values to O decimal places, eg. 5.275. Repairs and Maintenance Expense Income from Operations Incont before income Thaxes Income Prox Exense Net income/(Loss) Earning per share 5 5,35 For the Five Months Ended May 31. 2023 Assets Gurrent Assets coth Accounts Recelvatile impentiry 1 in Tolal Curren Aleis Proseryy Paist, and fauphicia 3. Fquerents 5 Ins is : Accumulated Drprecation foplpments Assume the role of a bank manager at Fidelity Bank \& Trust. Calculate MLTs current ratio as a measure of liquidity, and times interest earned ratio as a measure of MLT's ability to pay interest. (Round answers to 2 decimal places, eg. 52.75) Would you recommend extending a long-term note for funancing of MLT's purchase of additional baking equipment? eTextbook and Media Lydia Trottier has prepared baked goods for sale since 2001 . She started the baking business in her home and has been operating in a rented building with a storefront since 2006. Lydia incorporated the business as MLT Inc on January 1, 2023, with an initial share issue of 1,000 common shares for $2,500. Lydia is the principal shareholder of MLT Inc. Sales have increased by 30% annually since operations began at the present location, and additional equipment is needed for the continued growth that is expected. Lydia wants to purchase some additional baking equipment and to finance the equipment through a long-term notefrom a commercial bank. Fidelity Bank \& Trust has asked Lydia to submit a statement of income for MLT for the first five months of 2023 and a statement of financial position as at May 31, 2023. Lydia assembled the following information from the corporation's cash basis records to use in preparing the financial statements that the bank wants to see: 1. The bank statement showed the following 2023 deposits through May 31 : 2. The following amounts were dibursed through May 31:2023: 2. The following amounts were disbursed through May 31.2023: 3. Unpaid invoices at May 31, 2023, were as follows: 4. Accounts receivable records showed uncollected sales of $4,336 at May 31,2023. 5. Raw materials inventory costing $2,075 was on hand at May 31.2023. There were no materials in process or finished goods on hand at that date. No raw materials were on hand or in process and no finished goods were on hand at January 1,2023. 6. The note for the three-year bank loan is dated January 1, 2023, and states a simple interest rate of 8%. The loan requires quartprly payments on April 1, July 1, October 1, and January 1. Each payment is to consist of equal principal payments [$2,880+(34)=$240] plus accrued interest since the last payment. 7. Employees have been paid through May 25, 2023, and are due an additional \$270 on May 31, 2023 . 8. Equipment costing $3,600 was purchased on Japuary 2,2023 , and has an estimated useful life of five years with no residual value. Straight-line depreciation is used. 9. Rent was paid for six months in advance on January 2,2023. 10. Aone-year insurance policy was purchased on January 2. 2023. 11. MLT is subject to an income tax rate of 20%. No tax instalments have been paid. 12. Payments and collections from the unincorporated business through December 31.2022, were not included in the 12. Payments and collections from the unincorporated business through December 31,2022 , were not included in the corporation's records, and no cash was transferred from the unincorporated business to the corporation. using the accraar basis of accounting, prepare a statement of income for the five months ended May 31. 2023. (Round eamings p share value to 2 decimal ploces, e. 5.27 and other values to O decimal places, eg. 5.275. Repairs and Maintenance Expense Income from Operations Incont before income Thaxes Income Prox Exense Net income/(Loss) Earning per share 5 5,35 For the Five Months Ended May 31. 2023 Assets Gurrent Assets coth Accounts Recelvatile impentiry 1 in Tolal Curren Aleis Proseryy Paist, and fauphicia 3. Fquerents 5 Ins is : Accumulated Drprecation foplpments Assume the role of a bank manager at Fidelity Bank \& Trust. Calculate MLTs current ratio as a measure of liquidity, and times interest earned ratio as a measure of MLT's ability to pay interest. (Round answers to 2 decimal places, eg. 52.75) Would you recommend extending a long-term note for funancing of MLT's purchase of additional baking equipment? eTextbook and Media