On Jan 1, Salim Patel started the Patel Engineering Design Corporation. The following transactions are for his first month of operations: Jan. 1 Salim received a family loan of $30,000 which he deposited into the engineering design Corporation account at ScotiaBank. The loan is expected to be paid back in 2 years. He also deposited $20,000 of his own funds into the same account and in return, the Corporation issued Common shares to him. Jan. 2 He went out and bought design software for $10,000, paying $4,000 cash and the remainder to on account/credit Jan 3 Salim got a design contract for January for $11,000. He received $2,000 cash with the rest to be paid in February Jan. 5 He paid $800 for marketing costs on account. Jan. 8 He needed office supplies, so he paid $400 for office supplies. Jan. 11 He obtained another design contract for January for $5,000 and received $3,000 cash with the rest to be paid on completion later in the month on account. Jan. 15 Salim paid rent for the month in the amount of $1,000 Jan. 16 Salim got tired of taking the TTC and bought and paid in full for a used car for $8,000. He also paid $2,400 for insurance Jan. 25 He paid in full the balance due from the Jan 2 transaction Jan. 30 Salim paid $4,000 in salaries Jan. 30 He received a bill for gas for the month in the amount of $1,000 Jan. 30 He received a $5,000 payment from customers who were billed in the January 3 transaction an $2,000 from customers billed in the Jan. 11 Required: Prepare the Balance Sheet and an Income Statement for January 31, 20XX

Calculate the three Liquidity ratios? Calculate the inventory turnover, average inventory age, accounts receivable turnover, average collection period of receivables, accounts payable turnover and the average age of payable ratios? Calculate the three debt ratios? Calculate the six profitability ratios?