Please help solve for the following financial problems: Your team has been hired to provide financial analysis for a start-up company, Bobble in Style, which produces customized bobble heads. The bobble heads are made out of less rigid materials and are more true to life than those of competitors. The company inventors, Mr. and Mrs. Lee, are going to pitch their idea to Shark Tank in a few months, but first, they need to have a better understanding of the business financials. The Lees are already creating and selling their product from their home-based office and work area. They know what costs are involved with making the bobble heads on a small scale, but they dont have an understanding of financial figures beyond basic costs. They need you to make sense of various financial figures for them (Please help show calculations for a better understanding of the solution). Thanks

1. Financial Statements: Develop an Income Statement, Cash Flow Statement, and Balance Sheet based on the provided data for year 20XX (the previous year) that follows. Explain the purpose of each financial statement.

a. Income Statement Data for 20XX: Gross Sales = $33,291 Coupons and Discounts = $549 Cost of Goods = $10,276 Labor = $0 (Mr. and Mr. Lee were the only ones working and did not pay themselves) advertising fees =$2000 bank fees = $120 phone/internet = $1200 shipping = $1380 utilities = $900 office supplies = $785 Income tax = 26 %

b. Cash Flow Statement Data for 20XX: Cash in bank = $21,120 Depreciation = $800 Proceeds from disposal of investment = $3,000 Capital Expenditure = -$1,600 Repayment of Bank Loan = -$5,000 Interest Expense Associated with Bank Loan = -$345 Consider any data relevant from the income statement.

c. Balance Sheet Data for 20XX: Cash = $21,120 Accounts Receivable = $496 Accounts Payable = $200 Inventory = $10,507 Accumulated Depreciation = -$1,000 Common Stock = $0.

2) Financial Ratios: Calculate the following financial ratios and explain the meaning of the results.

a. Net Profit Margin

b. Quick Ratio

c. Debt-to-Equity Ratio.

4) Net Present Value: The Lees are considering adding a new piece of equipment that will speed up the process of building the bobble heads. The cost of the piece of equipment is $42,000. It is expected that the new piece of equipment will lead to cash flows of $17,000, $29,000, and $40,000 over the next 3 years. If the appropriate discount rate is 12%, what is the NPV of this investment? Explain the findings.

6) Incremental Analysis: If production does increase dramatically after their presentation on Shark Tank, the Lees will need more space for production. They have two options. Option 1 is to rent out a spacious warehouse nearby. If they pursue this option, their rent will be $1,200 per month and utilities are estimated to cost an additional $350 per month. Their second option, Option 2, is to rent a smaller storefront space that is also nearby. The storefront rent is $1350 per month. However, utilities will likely only cost an additional $150 per month. They want to compare their options over one years time (since each rental contract is a 1-year commitment). What is the incremental analysis if the Lees choose Option 1 over Option 2?

8) Contribution Margin: Based on the Break-Even Analysis just performed, what is the contribution margin per unit?