Please Explain STEP by STEP Thank you!

At the end of last month, Paarl Manufacturing had $45,952 in the bank. It owed the bank $223,000 for their mortgage. It also had a working capital loan of $32,000. Its customers owed $22,941 and it owed its suppliers $12,981. The company owned property worth $252,000. It had $122,000 in finished goods, $101,500 in raw materials, and $40,500 in work in progress. Its production equipment was worth $442,000 when new (partially paid for by a large government loan due to be paid back in three years) but had accumulated a total of $246,000 in depreciation$33,000 worth last month. The company has investors who put up $101,000 for their ownership. It has been reasonably profitable; this month the gross income from sales was $223,000, and the costs associated with sales was only $42,000. Expenses were also relatively low; salaries were $47,000 last month, while the other expenses were depreciation, maintenance at $1560, advertising at $3600, and insurance at $270. In spite of $32,914 in accrued taxes (Paarl pays taxes at 45 percent), the company had retained earnings of $132,000. Construct a balance sheet (as of the end of this month) and income statement (for this month) for Paarl Manufacturing. Should the company release some of its retained earnings through dividends at this time?

First, construct a balance sheet as of the end of this month. Start with the Assets section of the balance sheet and then the liabilities and owners' equity sections.

At the end of last month, Paarl Manufacturing had $45,952 in the bank. It owed the bank 5223,000 for their mortgage. It also had a working capital loan of $32,000. Its customers owed $22,941 and it owed its suppliers $12,981. The company owned property worth $252,000. It had $122,000 in finished goods, 5101,500 in raw materials, and $40,500 in work in progress. Its production equipment was worth $442,000 when new (partially paid for by a large government loan due to be paid back in three years) but had accumulated a total of $246,000 in depreciation$33,000 worth last month. The company has investors who put up $101,000 for their ownership. It has been reasonably profitable; this month the gross income from sales was $223,000, and the costs associated with sales was only $42,000. Expenses were also relatively low, salaries were $47,000 last month, while the other expenses were depreciation, maintenance at $1560, advertising at $3600, and insurance at $270. In spite of $32,914 in accrued taxes (Paarl pays taxes at 45 percent), the company had retained earnings of $132,000. Construct a balance sheet (as of the end of this month) and income statement (for this month) for Paarl Manufacturing. Should the company release some of its retained earnings through dividends at this time? First, construct a balance sheet as of the end of this month. Start with the assets section of the balance sheet and then the liabilities and owners' equity sections. Balance Sheet Paarl Manufacturing As of the end of the month Assets Current assets Total Current Assets Long-term assets Total Long-Term Assets Total assets Liabilities and Owners' Equity Current Liabilities Total Current Liabilities Long-term Liabilities Construct a balance sheet (as of the end of this month) and income statement (for this month) for Paarl Manufacturing. Should the company release some of its retained earnings through dividends at this time? First, construct a balance sheet as of the end of this month. Start with the assets section of the balance sheet and then the liabilities and owners' equity sections. Balance Sheet Paarl Manufacturing As of the end of the month Assets Current assets Accounts payable Accounts receivable Accrued taxes Cash Common shares IMI Equipment Finished goods Equity Government loan Less accumulated depreciation Mortgage loan Property Raw materials Retained earnings Work in progress Working capital loan Long-term Liabilities Total Long-Term Liabilities Total Liabilities Owners' Equity Total Owners' Equity Total Liabilities and Owners' Equity Now, construct an income statement for this month. (Use parentheses or a minus sign for a net loss.) Income Statement Paarl Manufacturing for the month ended Revenues Net income from sales Expenses Total expenses Income before taxes Taxes Net income Now determine whether the company should release some of its retained earnings through dividends at this time by calculating the equity ratio. Long-term Liabilities Total Long-Term Liabilities Total Liabilities Owners' Equity Total Owners' Equity Total Liabilities and Owners' Equity Now, construct an income statement for this month. (Use parentheses or a minus sign for a net loss.) Income Statement Paarl Manufacturing for the month ended Revenues Advertising Cash Depreciation Gross income from sales Interest Insurance Less cost of goods sold Maintenance release some of its retained earnings through dividends at this time by calculating the equity ratio. Salaries Next Total Owners' Equity Total Liabilities and Owners' Equity Now, construct an income statement for this month. (Use parentheses or a minus sign for a net loss.) Income Statement Paarl Manufacturing for the month ended Revenues 7 Net income from sales Expenses Total expenses Income before taxes Taxes Net income Now determine whether the company should release some of its retained earnings through dividends at this time by calculating the equity ratio. The equity ratio is a (Round to three decimal places as needed.) Should the company release some of its retained earnings through dividends at this time? O A. Since the equity ratio is high, the company has too much debt. The company should not issue dividends so it can reduce its debt. O B. Since the equity ratio is low, the company has a low amount of debt. The company should issue dividends to make its shareholders happy. O C. Since the equity ratio is low, the company has too much debt. The company should not issue dividends so it can reduce its debt. O D. Since the equity ratio is high, the company has a low amount of debt. The company should issue dividends to make its shareholders happy. At the end of last month, Paarl Manufacturing had $45,952 in the bank. It owed the bank 5223,000 for their mortgage. It also had a working capital loan of $32,000. Its customers owed $22,941 and it owed its suppliers $12,981. The company owned property worth $252,000. It had $122,000 in finished goods, 5101,500 in raw materials, and $40,500 in work in progress. Its production equipment was worth $442,000 when new (partially paid for by a large government loan due to be paid back in three years) but had accumulated a total of $246,000 in depreciation$33,000 worth last month. The company has investors who put up $101,000 for their ownership. It has been reasonably profitable; this month the gross income from sales was $223,000, and the costs associated with sales was only $42,000. Expenses were also relatively low, salaries were $47,000 last month, while the other expenses were depreciation, maintenance at $1560, advertising at $3600, and insurance at $270. In spite of $32,914 in accrued taxes (Paarl pays taxes at 45 percent), the company had retained earnings of $132,000. Construct a balance sheet (as of the end of this month) and income statement (for this month) for Paarl Manufacturing. Should the company release some of its retained earnings through dividends at this time? First, construct a balance sheet as of the end of this month. Start with the assets section of the balance sheet and then the liabilities and owners' equity sections. Balance Sheet Paarl Manufacturing As of the end of the month Assets Current assets Total Current Assets Long-term assets Total Long-Term Assets Total assets Liabilities and Owners' Equity Current Liabilities Total Current Liabilities Long-term Liabilities Construct a balance sheet (as of the end of this month) and income statement (for this month) for Paarl Manufacturing. Should the company release some of its retained earnings through dividends at this time? First, construct a balance sheet as of the end of this month. Start with the assets section of the balance sheet and then the liabilities and owners' equity sections. Balance Sheet Paarl Manufacturing As of the end of the month Assets Current assets Accounts payable Accounts receivable Accrued taxes Cash Common shares IMI Equipment Finished goods Equity Government loan Less accumulated depreciation Mortgage loan Property Raw materials Retained earnings Work in progress Working capital loan Long-term Liabilities Total Long-Term Liabilities Total Liabilities Owners' Equity Total Owners' Equity Total Liabilities and Owners' Equity Now, construct an income statement for this month. (Use parentheses or a minus sign for a net loss.) Income Statement Paarl Manufacturing for the month ended Revenues Net income from sales Expenses Total expenses Income before taxes Taxes Net income Now determine whether the company should release some of its retained earnings through dividends at this time by calculating the equity ratio. Long-term Liabilities Total Long-Term Liabilities Total Liabilities Owners' Equity Total Owners' Equity Total Liabilities and Owners' Equity Now, construct an income statement for this month. (Use parentheses or a minus sign for a net loss.) Income Statement Paarl Manufacturing for the month ended Revenues Advertising Cash Depreciation Gross income from sales Interest Insurance Less cost of goods sold Maintenance release some of its retained earnings through dividends at this time by calculating the equity ratio. Salaries Next Total Owners' Equity Total Liabilities and Owners' Equity Now, construct an income statement for this month. (Use parentheses or a minus sign for a net loss.) Income Statement Paarl Manufacturing for the month ended Revenues 7 Net income from sales Expenses Total expenses Income before taxes Taxes Net income Now determine whether the company should release some of its retained earnings through dividends at this time by calculating the equity ratio. The equity ratio is a (Round to three decimal places as needed.) Should the company release some of its retained earnings through dividends at this time? O A. Since the equity ratio is high, the company has too much debt. The company should not issue dividends so it can reduce its debt. O B. Since the equity ratio is low, the company has a low amount of debt. The company should issue dividends to make its shareholders happy. O C. Since the equity ratio is low, the company has too much debt. The company should not issue dividends so it can reduce its debt. O D. Since the equity ratio is high, the company has a low amount of debt. The company should issue dividends to make its shareholders happy