Part B 2 Marks 5 Minutes Samantha would like to borrow money from the bank and she knows that they will look at the financial statements to assess the business. Samantha would like to prepare for the bank meeting by understanding one positive and one negative issue regarding her company's performance and financial position. Required: Review the financial statements and explain one positive and one negative point about her business's financial position and performance based on your review of your balance sheet and the below income statement and statement of equity. Explain why it is a positive or negative point. Note: Be specific why it is a positive or negative applied to the business. For instance, saying 'cash is good' is obvious and self-evident - you want to provide more insightful analysis so better to relate the information to the other information provided in the question for a more thorough response. For instance,as an example, commenting on whether the cash is enough for the business and how can you tell would be a better response. Note: Ignore the lack of double underlines due to D2L's formatting restrictions Musical Adventures Income Statement Musical Adventures Income Statement For the six months ended February 29, 2020 Revenue $ 81,000 Expenses: Salaries Expense Rent Expense Amortization Expense - Musical Equipment 39,000 12,500 6,000 57,500 Net Income $ 23,500 Musical Adventures Statement of Owner's Equity For the six months ended February 29, 2020 S. Morris, Capital 1,2019 September $ 29,200 Contributions Net Income 2,000 31,200 23,500 54,700 $ ta Less Withdrawals 15.700 S. Morris, Capital 2020 February 29, $ 39,000 Part B 2 Marks 5 Minutes Samantha would like to borrow money from the bank and she knows that they will look at the financial statements to assess the business. Samantha would like to prepare for the bank meeting by understanding one positive and one negative issue regarding her company's performance and financial position. Required: Review the financial statements and explain one positive and one negative point about her business's financial position and performance based on your review of your balance sheet and the below income statement and statement of equity. Explain why it is a positive or negative point. Note: Be specific why it is a positive or negative applied to the business. For instance, saying 'cash is good' is obvious and self-evident - you want to provide more insightful analysis so better to relate the information to the other information provided in the question for a more thorough response. For instance,as an example, commenting on whether the cash is enough for the business and how can you tell would be a better response. Note: Ignore the lack of double underlines due to D2L's formatting restrictions Musical Adventures Income Statement Musical Adventures Income Statement For the six months ended February 29, 2020 Revenue $ 81,000 Expenses: Salaries Expense Rent Expense Amortization Expense - Musical Equipment 39,000 12,500 6,000 57,500 Net Income $ 23,500 Musical Adventures Statement of Owner's Equity For the six months ended February 29, 2020 S. Morris, Capital 1,2019 September $ 29,200 Contributions Net Income 2,000 31,200 23,500 54,700 $ ta Less Withdrawals 15.700 S. Morris, Capital 2020 February 29, $ 39,000
