Please prepare the Working Capital, Current Ratio, and Inventory Turnover Ratio. Explain trends issues for them.

What changes in revenue and expense items should be reviewed to improve operations? What effect would a capital withdrawal have on the business?

SARAH'S CAFE & BAKE SHOP LLC Year Ended Year Ended Dec. 31, 20X2 Dec. 31. 20x1 / --------- Hortizonal Analysis Period Period $$ Change PCT. Change --/ Year Ended Dec. 31, 20x0 $ $ Balance Sheet Assets Cash Accounts Receivable Inventory Supplies Prepaid Rent Prepaid Insurance Land Equipment Accumulated Depreciation Total Assets 9,700 26,500 47,000 19,000 12,000 5,000 29,000 55,000 (49,000) 154,200 32,000 12,000 28,000 8,000 9,000 1,700 (22,300) 14,500 19,000 11,000 3,000 3,300 29,000 -70% $ 121% 68% 138% 33% 194% 21,200 10,000 22,000 9,000 9,000 2,000 0% 55,000 (47,000) 98,700 0% 4% (2,000 55,500 55,000 (45,000) 83,200 $ $ 56% $ $ $ Liabilities Accounts Payable Wages Payable Unearned Wedding Cakes Revenue Total Liabilities 5,000 7,000 18,000 30,000 3,500 4,000 8,000 15,500 1,500 3,000 10,000 14,500 43% 75% 125% 94% 8,000 3,000 9,000 20,000 $ $ $ $ $ $ $ Owner Equity Sarah Capital Net Income Total Owner Equity 97,200 27,000 124,200 63,200 20,000 83,200 34,000 7,000 41,000 54% 35% 49% 49,700 13,500 63,200 $ $ $ $ Total Liabilities & Equity $ 154,200 98,700 $ 55,500 56% $ 83,200 $ 7% Income Statement Bakery Revenue Coffee Revenue Wedding Cakes Revenue Gross Revenue Cost of Goods Sold Gross Proft 111,000 39,000 125,000 275,000 (151,000 124,000 104,000 38,000 95,000 237,000 (130,000) 107,000 7,000 1,000 30,000 38,000 (21,000) 17,000 92,000 37,000 80,000 209,000 (114,000 95,000 $ $ 3% 32% 16% 16% 16% $ $ $ $ $ $ $ $ 6,000 Operating Expenses Wages Expense Advertising Expense Rent Expense Insurance Expense Supplies Expense Utilities Expense Depreciation Expense Miscellaneous Expenses Total Expenses Net Operating Income (Loss) 16,000 3,000 36,000 13,000 3,000 22,000 2,000 2,000 97,000 27,000 10,000 3,000 32,000 10,000 2,500 19,000 2,000 8,500 87,000 20,000 4,000 3,000 500 3,000 60% $ 0% 13% 30% 20% 16% 0% -76% 11% $ 35% $ 9,500 6,000 32,000 10,000 2,000 17,000 2,000 3,000 81,500 13,500 $ $ $ $ $ $ (6,500 10,000 7,000 Year Ended Dec. 31. 20X2 Year Ended Dec. 31. 20X1 Period Change $ Statement of Owner Equity Beginning Owner Capital Capital Contributions Net Income Withdrawals Ending Owner Capital 83,200 14,000 27,000 63,200 10,000 20,000 (10,000) 83,200 20,000 4,000 7,000 10,000 41,000 32% 40% 35% -100% 49% $ 124,200 $ $