Part-1 Your uncle Ernie just passed away and left you his lumberyard. Uncle Ernies will says that you must operate the lumberyard for at least five years after his death; after the fiveyear period, you can sell it or continue to operate it. Going through last years records, you notice that the lumberyard had cash sales of $130,000 and credit card sales of $120,000. Uncle Ernies lumberyard also received $250,000 in account sales. The lumberyard paid a total of $200,000 for the merchandise and $25,000 for shipping to obtain goods for sale. Last year uncle Ernie paid himself a salary of $1250 per month and paid his remaining employees a salary of $110,000 for the year (including FICO); in addition he paid $4,950 for advertising, $,1250 for supplies, $1,500 for miscellaneous shipping and delivery to customers, $4,500 for insurance, $5,000 for maintenance, and $2,500 to lease computers and cash registers. (Note: assume a 20% tax rate) From this information, create a profit and loss statement and indicate what uncle Ernie made last year (round answers to the nearest $25 increment). Income Net Sales Cost of Goods Sold Gross Profit Operating Expenses Salaries Advertising Supplies Shipping Insurance Maintenance Leased Equipment Total Net profit before taxes Taxes Net profit after taxes Part-2 Uncle Ernies forgetful accountant, Billy Bailey gave you the following balance sheet complete the parts that Billy Bailey left-out (i.e., determine the total assets, total liabilities, owners equity and liabilities & net worth) Assets Liabilities Current Current Cash $25,000 Payroll $12,000 Inventory 52,000 Taxes 15,000 Accounts receivable 133,500 Accounts Payable 40,000 Total $210,500 Short-term Loan 1,050 Total $68,050 Fixed Property $225,000 Fixed Building 175,000 Mortgage $175,000 Store fixtures 14,550 Long-term loan 85,000 Equipment 2,550 Total $260,000 Total $417,100 Total Liabilities Total assets Owner's Equity Liabilities & Net worth Part-3 Using the P & L statement and the balance sheet to calculate the quick ratio, current ratio, net profit margin, asset turnover, return on assets, financial leverage, and return on net worth and indicate whether Uncle Ernies lumber yard is running efficiently.