Phase #2

Use the Comparative Balance Sheet you prepared in Required #1, step #3, and the following additional information to prepare the Statement of Cash Flows for the month of January 2022. Use the indirect method to prepare the operating activities section.

• Issued 20,000 new shares of common stock in exchange for a Building. The stock was selling on the market at an average price of $10 per share on the date of sale and the par value of the stock was 50 cents.
• Purchased land with a cost $300,000. A down payment was made in the amount of $100,000 cash and a 10% 5-year note payable was signed for the difference.
• Purchased additional store equipment for $30,000 paying cash.
• The notes receivable were related to the sale of merchandise inventory to a credit customer this period. Hint: The increase in notes receivable should be reported as an item in the operating activities section of the statement of cash flows.
• Issued bonds with a face amount of $375,000 at 97. Hint: The amortization of the bond discount in the amount of $750 should be reported as an addition to the operating activities section.
• Used the cash proceeds from the bond issue to pay off the mortgage payable of $210,000.
• The company repurchased 20,000 shares of its common stock on the open market for $9 per share.
• The company reissued 10,000 of the treasury shares at a price of $18 per share.
• Issued 1,500 shares of preferred stock at $105 per share.
• Paid cash dividends of $5,615 to preferred and common stockholders.

Phase #3

Prepare the following Ratios for January 2022:

1. Current Ratio
2. Acid-Test Ratio
3. Debt Ratio
4. Profit Margin Ratio
5. Gross Margin Ratio

Please answer phase 2 + 3

Credits Debits 521,865.00 $ 24.150.00 483.00 63.00 15,000.00 5,450.00 10,500.00 315.00 2,940.00 368,250.00 620,000.00 48,100.00 94.500.00 18,250.00 108,750.00 16,625.00 72,775.00 25,000.00 7,500.00 4,778.00 200,000.00 375,000.00 10,500.00 Be Prepared Adjusted Trial Balance January 31, 2022 Account ID Account Description 1001 Cash $ 1021 Accounts Receivable 1022 Allowance for Doubtful Acc 1027 Interest Receivable 1031 Notes Receivable 1051 Merchandise Inventory 1101 Store Supplies 1111 Office Supplies 1125 Prepaid Insurance 1401 Land 1411 Building 1412 Accum Dep: Building 1431 Office Equipment 1432 Accum Dep: Office Equipm 1451 Store Equipment 1452 Accum Depr: Store Equipm 1501 Patents 2001 Accounts Payable 2005 Income Taxes Payable 2031 Interest Payable 2101 Notes Payable long term 2301 Bonds Payable 2303 Discount on Bonds Payable 3001 Preferred Stock 3011 Common Stock 3101 Paid in Capital In Excess of par: Prefer 3111 Paid in Capital In Excess of par: Com 3121 Paid in Capital Treasury Stock 3300 Retained Eamings 3351 Treasury Stock 4001 Sales Revenue 4002 Sales Discount 4003 Sales Returns & Allowances 4101 Interest Revenue 5001 Cost of Goods Sold 5010 Insurance Expense - General 5012 Repairs Expense: Office 5015 Depreciation Expense: Building - General 5020 Depreciation Exp: Office Eq 5025 Supplies Expense - Selling 5027 Utilities Expense: Office 5030 Office Salaries Expense 5035 Office Payroll Tax Expense 6005 Depreciation Exp: Store Eq 6010 Amortization Expense: Pat - General 6015 Sales Salaries Expense 6020 Sales Payroll Tax Expense 6022 Utilities Expense: Store 6025 Delivery Expense - General 6030 Repairs Expense: Store 6040 Bad Debts Expense - Selling 7001 Interest Expense $ 412,500.00 115,000.00 15,375.00 265,750.00 180,000.00 83,485.00 180.000.00 525,000.00 1,250.00 13,000.00 150.00 195,000.00 200.00 2,500.00 850.00 2,500.00 1,200.00 1,500.00 15.000.00 1,200.00 875.00 725.00 10,000.00 800.00 1,100.00 1,000.00 800.00 460.00 7,978.00 2,292,996.00 $ 2.292.996.00 Be Prepared Inc. Balance Sheet December 31, 2021 $ 26,250 7,875 210,000 244,125 Assets Cash Accounts Receivable Merchandise Inventory Office Supplies Prepaid Insurance Land Building Accumulated Depreciation, Building Office Equipment Accumulated Depreciation, Office Equipment Store Equipment Accumulated Depreciation, Store Equipment Patents Total Assets Liabilities 28,875 Accounts Payable $ 42,000 Income Taxes Payable 52,500 Mortgage Payable 1,575 Total Liabilities 3,150 68,250 420,000 Stockholder's Equity (47,250) Preferred Stock 94,500 Common Stock (15,750) Paid in Capital in Excess of par: Preferred 78,750 Paid in Capital in Excess of par: Common (15,750) Retained Earnings 73,500 Total Stockholder's Equity 784,350 Total Liabilities and Stockholder's Equity $ 262,500 105,000 7,875 75,750 89,100 540,225 784,350 $ Be Prepared Inc. Comparative Balance Sheet 1/31/22 12/31/22 28,875 42,000 521,865 24,150 -483 63 15,000 5,450 10,500 315 2,9401 579,800 52,500 1,575 3,150 128,100 $ millions Assets Current Assets Cash Accounts Receivable Allowance for Doubtful Acc Interest Receivable Notes Receivable Merchandise Inventory Store Supplies Office Supplies Prepaid Insurance Total Current Assets Non-Current Assets Land Building Accum Dep: Building Office Equipment Accum Dep: Office Equipm Store Equipment Accum Dep: Store Equipm Patents Total non-current assets Total Assets Liabilities Current liabilities Accounts Payable Income Taxes Payable Interest Payable Total current liabilities Long term liabilities Mortage Payable Notes Payable long term Bond Payable Discount on Bonds Payable Total non-current liabilities Total Liabilities Stockholders' Equity Preferred Stock Common Stock Paid in Capital in Excess of par:Prefer Paid in Capital in Excess of par:Com Paid in Capital Tresury Stock Retained Earnings Treasury Stock Total stockholders equity Total liabilities and stockholders' equity 368,250 620,000 -48,100 94,500 -18,250 108,750 -16,625 72,775 1,181,300 1,761,100 68,250 420,000 -47,250 94,500 -15,750 78,750 -15,750 73,500 656,250 784,350 26,250 7,875 25,000 7,500 4,778 37,278 34,125 210,000 200,000 375,000 -10,500 564,500 601,778 210,000 244,125 262,500 105,000 7,875 75,750 412,500 115,000 15,375 265,750 180,000 83,485 -180,000 892,1101 1,493,888 89,100 540,225 784,350 Credits Debits 521,865.00 $ 24.150.00 483.00 63.00 15,000.00 5,450.00 10,500.00 315.00 2,940.00 368,250.00 620,000.00 48,100.00 94.500.00 18,250.00 108,750.00 16,625.00 72,775.00 25,000.00 7,500.00 4,778.00 200,000.00 375,000.00 10,500.00 Be Prepared Adjusted Trial Balance January 31, 2022 Account ID Account Description 1001 Cash $ 1021 Accounts Receivable 1022 Allowance for Doubtful Acc 1027 Interest Receivable 1031 Notes Receivable 1051 Merchandise Inventory 1101 Store Supplies 1111 Office Supplies 1125 Prepaid Insurance 1401 Land 1411 Building 1412 Accum Dep: Building 1431 Office Equipment 1432 Accum Dep: Office Equipm 1451 Store Equipment 1452 Accum Depr: Store Equipm 1501 Patents 2001 Accounts Payable 2005 Income Taxes Payable 2031 Interest Payable 2101 Notes Payable long term 2301 Bonds Payable 2303 Discount on Bonds Payable 3001 Preferred Stock 3011 Common Stock 3101 Paid in Capital In Excess of par: Prefer 3111 Paid in Capital In Excess of par: Com 3121 Paid in Capital Treasury Stock 3300 Retained Eamings 3351 Treasury Stock 4001 Sales Revenue 4002 Sales Discount 4003 Sales Returns & Allowances 4101 Interest Revenue 5001 Cost of Goods Sold 5010 Insurance Expense - General 5012 Repairs Expense: Office 5015 Depreciation Expense: Building - General 5020 Depreciation Exp: Office Eq 5025 Supplies Expense - Selling 5027 Utilities Expense: Office 5030 Office Salaries Expense 5035 Office Payroll Tax Expense 6005 Depreciation Exp: Store Eq 6010 Amortization Expense: Pat - General 6015 Sales Salaries Expense 6020 Sales Payroll Tax Expense 6022 Utilities Expense: Store 6025 Delivery Expense - General 6030 Repairs Expense: Store 6040 Bad Debts Expense - Selling 7001 Interest Expense $ 412,500.00 115,000.00 15,375.00 265,750.00 180,000.00 83,485.00 180.000.00 525,000.00 1,250.00 13,000.00 150.00 195,000.00 200.00 2,500.00 850.00 2,500.00 1,200.00 1,500.00 15.000.00 1,200.00 875.00 725.00 10,000.00 800.00 1,100.00 1,000.00 800.00 460.00 7,978.00 2,292,996.00 $ 2.292.996.00 Be Prepared Inc. Balance Sheet December 31, 2021 $ 26,250 7,875 210,000 244,125 Assets Cash Accounts Receivable Merchandise Inventory Office Supplies Prepaid Insurance Land Building Accumulated Depreciation, Building Office Equipment Accumulated Depreciation, Office Equipment Store Equipment Accumulated Depreciation, Store Equipment Patents Total Assets Liabilities 28,875 Accounts Payable $ 42,000 Income Taxes Payable 52,500 Mortgage Payable 1,575 Total Liabilities 3,150 68,250 420,000 Stockholder's Equity (47,250) Preferred Stock 94,500 Common Stock (15,750) Paid in Capital in Excess of par: Preferred 78,750 Paid in Capital in Excess of par: Common (15,750) Retained Earnings 73,500 Total Stockholder's Equity 784,350 Total Liabilities and Stockholder's Equity $ 262,500 105,000 7,875 75,750 89,100 540,225 784,350 $ Be Prepared Inc. Comparative Balance Sheet 1/31/22 12/31/22 28,875 42,000 521,865 24,150 -483 63 15,000 5,450 10,500 315 2,9401 579,800 52,500 1,575 3,150 128,100 $ millions Assets Current Assets Cash Accounts Receivable Allowance for Doubtful Acc Interest Receivable Notes Receivable Merchandise Inventory Store Supplies Office Supplies Prepaid Insurance Total Current Assets Non-Current Assets Land Building Accum Dep: Building Office Equipment Accum Dep: Office Equipm Store Equipment Accum Dep: Store Equipm Patents Total non-current assets Total Assets Liabilities Current liabilities Accounts Payable Income Taxes Payable Interest Payable Total current liabilities Long term liabilities Mortage Payable Notes Payable long term Bond Payable Discount on Bonds Payable Total non-current liabilities Total Liabilities Stockholders' Equity Preferred Stock Common Stock Paid in Capital in Excess of par:Prefer Paid in Capital in Excess of par:Com Paid in Capital Tresury Stock Retained Earnings Treasury Stock Total stockholders equity Total liabilities and stockholders' equity 368,250 620,000 -48,100 94,500 -18,250 108,750 -16,625 72,775 1,181,300 1,761,100 68,250 420,000 -47,250 94,500 -15,750 78,750 -15,750 73,500 656,250 784,350 26,250 7,875 25,000 7,500 4,778 37,278 34,125 210,000 200,000 375,000 -10,500 564,500 601,778 210,000 244,125 262,500 105,000 7,875 75,750 412,500 115,000 15,375 265,750 180,000 83,485 -180,000 892,1101 1,493,888 89,100 540,225 784,350