please review the finanacial statment and answer the following

Question.what is wrong with the cost analysis?

Question. analyze the financial statements and discuss it?

Financial Structure Exhibits 2 and 3 are the most current financial statements for Inner- City Paint Com They have been prepa because Walsh did not want to incur the expense it would have red by the company's accounting service. No audit has hees incur the expense it would have required.performed t would have required. aerm EXHIBIT 2 Balance Sheet for the Current Year Ending June 30: Inner-City Paint Corporation Current assets Cash Ga C A Accounts receivable (net of allowance for bad debts of $63,400) Inventory $1.535 242320 Th Total current assets Machinery and transportation equipment Less accumulated depreciation $262515 47.550 500 Thom Net fixed assets Total assets Current liabilities Accounts payable Salaries payable Notes payable Taxes payable $217.820 22,480 6.220 $285,030 15,000 Total current liabilities Long-term notes payable Owners' equity Common stock, no par. 1,824 shares outstanding Deficit 12.400 17.865 $294 55 Total liabilities and owners' equity EXHIBIT 3 Income Statement for the Current Year Ending June 30: Inner-City Paint Corporation $1,784,080 Sales Cost of goods sold WHEN US 5355,350 A CUST LABEL Gross margin Selling expeuses Administralive es.penses President's salary Office Manager's salary $72.460 67,280 132.000 Total expenies Net income