Please note that your analysis should focus on items that differ between 2018 and 2019. These financials are somewhat brief and do not include some expenses or accounts that you would normally see on financials. Do not be concerned about these omissions. Also, numbers are mostly whole amounts just to make calculations easier. Again, focus on items in 2019 that may indicate unusual transactions or differences between these two years.

In a Word document provide the following:

1. State at least four items or areas that you find concerning and you feel you need to examine further. For example, you may want to look at a specific expense, revenue, asset, liability, or use of cash item. You may also want to look at changes in summary items like gross profit, asset totals, or net income. State specifically why you are concerned with a specific item. For example, if sales had fallen you could note: Sales fell 5% from the 2018 level. Be specific and clear with your explanations. You should write several sentences for each of the four items you mention.

2. For each of the items you identify in section 1 above, note questions or topics of discussion you would have with either Carl, the bookkeeper, or the bank executive.

CEC Partners Balance Sheet Years Ended 2018 and 2019 Liabilities Current Liabilities \begin{tabular}{l|r|r} Accounts Payable & 3,000 & 10,000 \\ \hline Interest Payable & 200 & 200 \\ \hline Tases Payable & & - \\ \hline Total Current Liabilities & 3,200 & 10,200 \\ \cline { 2 - 3 } Long-Term Liabilities & & \\ Loans Payable & 40,000 & 90,000 \\ \hline Total Liabilities & 43,200 & 100,200 \\ \hline \end{tabular} Partners' Equity \begin{tabular}{lc|c} \hline Beginning Capital & 81,800 & 261,000 \\ Partner Contributions & & \\ Net Income & 136,000 & 3,583 \\ \hline & 217,800 & 264,583 \\ Partner Withdrawals & - & (100,000] \\ \cline { 2 - 3 } Total Equity & 217,800 & 164,583 \\ \hline Total Liabilities and Partners' Equ & 261,000 & 264,783 \\ \hline \end{tabular} (0) CCC Partners Income Statements For the Years Ended December 2018, 2019 Net Sales Revenues Cost of Goods Sold Gross Profit \begin{tabular}{|c|r|} \hline 2018 & \multicolumn{1}{|c}{2019} \\ \hline HHH\#H\# & 1,650,000 \\ \hline 675,000 & 790,000 \\ \hline 825,000 & 860,000 \\ \hline \end{tabular} Operating Expenses: \begin{tabular}{|l|r|r|} \hline Salaries Expense & 500,000 & 550,000 \\ \hline Rent Expense & 120,000 & 130,000 \\ \hline Utilities Expense & 24,000 & 24,000 \\ \hline Supplies Expense & 12,000 & 20,000 \\ \hline Bad Debt Expense & - & 50,000 \\ \hline Marketing Expense & - & 25,000 \\ \hline Depreciation Expense-Furniture & 12,000 & 18,000 \\ \hline Depreciation Expense- Equipment & 20,000 & 50,000 \\ \hline Depreciation Expense-Computer & & 417 \\ \cline { 2 - 3 } Total Operating Expenses & 688,000 & 867,417 \\ \hline rating Income & 137,000 & (7,417) \\ \hline er Income and (Expenses) & & \\ \hline Interest Expense & (1,000) & (1,000) \\ \hline Gain on Sale of Equipment & - & 12,000 \\ \hline Total Other Income and Expenses & (1,000) & 11,000 \\ \cline { 2 - 3 } Income & 136,000 & 3,583 \\ \hline \end{tabular} CCC Partners, LLP Cash Flow Statement For the Year Ended December 2019 Cash Flows from Operating Activities