Please help me with the attached file asap. I am struggling to understand esp second problem

Physicians Executive MBA BUSI 7326 Cost Analysis and Systems 1. This problem is a continuation of the March Auburn Windows exercise in the problem set for Module 2. Be sure to begin with the financials from the end of March, which I have included on the following page. Remember that at the beginning of an accounting period (in this case, April 1), all income statement account balances and the dividend account balance are set to zero by the closing process. In contrast, all balance sheet account balances at the end of an accounting period (in this case, March 31) become the beginning account balances of the next accounting period. The following transactions occurred during April for Auburn Windows, Inc. April 2 2 4 7 12 15 17 19 24 30 30 Bought a computer for the business for $2,400 cash. Paid employees wages owed from March. Collected $3,400 from customers billed in March. Purchased cleaning supplies for $6,000 on account. Billed customers $7,000 for cleaning services. Paid $4,500 for the supplies purchased on April 7. Collected $3,200 from customers billed on April 12. Received $800 for services to be performed in May. Paid $300 cash for advertising that ran from April 10-23. For the month, paid for $1,500 in gas and oil for the truck. Paid $3,250 cash for employee salaries for the month. At the end of the month, the following additional information was available. Depreciation on equipment is calculated using a 4 year life and no salvage value. Depreciation on the computer is calculated using a 2 year life and no salvage value. One-twelfth of the insurance expired. A count shows $2,700 of cleaning supplies on hand at April 30. Earned but unbilled services at April 30 equal $5,400. Prepare all necessary journal entries and prepare an Income Statement and a Statement of Stockholders' Equity for April and a Balance Sheet as of April 30. Auburn Windows Income Statement For the month ended 3/31 Service Revenue 10,000 Expenses: Wage Expense Supplies Expense Depreciation Expense Fuel Expense Insurance Expense Total Expenses Net Income 2,550 4,000 150 600 200 7,500 2,500 Auburn Windows Statement of Stockholders' Equity For the month ended 3/31 Common Stock 0 20,000 ----20,000 Beginning Balance at 3/1 Issuance of stock Net Income Dividends Ending Balance at 3/31 Retained Earnings 0 --2,500 200 2,300 Auburn Windows Balance Sheet As of 3/31 Assets: Cash A/R Supplies Prepaid Insurance Equipment, net of accumulated depreciation of 150 Total Assets 6,300 6,000 1,000 2,200 7,050 22,550 Liabilities and Stockholders' Equity Wages Payable Common Stock Retained Earnings Total Liabilities and Stockholders' Equity 250 20,000 2,300 22,550 2. Conduct a financial comparison of one of the following tandems: CVS/Walgreens; Target/Wal-Mart; American Eagle/Gap. Please focus your analysis on the first company, with the second company listed as comparison. For example, if you choose the first tandem, your main analysis is for CVS, but you need to know something about Walgreens to generate appropriate context for interpretation (e.g., \"CVS is less profitable than its main competitor...\"). Include in your analysis a written assessment supported by 1) horizontal, vertical, and ratio analyses and 2) your review of other relevant and/or current information such as management's discussion and analysis, the proxy statement, recent press releases or quarterly earnings announcements, etc. I am looking for overall and justifiable conclusions from the analysis. I want to see evidence that you understand the financial condition and position of the company and what might be expected going forward. Tell me the company's current financial story. I am not looking for a blow by blow review of your ratios, although I do want to see how you calculated them in an appendix to your written comments. I don't want to put an absolute page limit on your written comments, but I imagine that they would not exceed five or so double-spaced pages (and may be less). Let me know if you need more clarification. 3. Now that you have prepared financial statements for a fictitious company (#1) and analyzed the financial statements of a publicly traded company (#2), I'd like you to turn your attention to your own organization's income statement and balance sheet. Conduct a horizontal and vertical analysis of the major items on each statement and summarize for me your organization's financial model. You should also include a few ratios. For example, you may find that 60% or revenues come from one source while 40% comes from another. You may find that the company is sitting on a wad of cash or that liabilities are very high given total assets. You might find that new debt has been created to finance a new building. Basically, I want this question to cause you to understand what is happening financially in your own organization. I'm looking for a 30,000-foot viewpoint, so you don't have to dive into the nitty gritty details. Answer the question as if you are explaining \"how things work\" to a professional colleague who is interested in your business. A few pages should be plenty. Let me know if you need more clarification