Please see attachment. Answer question fully and completely.

Consider the following financial information for the year ended December 31, 2015 for Kevin's Lobster Shack, a thriving restaurant in Jaco, Costa Rica. Accounts Payable Wages and Taxes payable Cash balance, Jan. 1/15 Cash balance, Dec. 31/15 Food and Supplies Expense Selling and Admin Expenses Food and Supply Inventory Notes Payable Other Assets $ 166,000 120,000 84,000 94,000 1,415,000 235,000 87,000 235,000 529,000 Dividends paid during 2015 Other Liabilities Other Revenues Property and Equipment Restaurant Sales Revenue Utilities and Other Expenses Wages Expense Retained Earnings, Jan 1/15 Henry's Contributed Capital $ 39,000 517,000 21,000 1,549,000 3,920,000 1,104,000 1,087,000 1,074,000 86,000 Prepare a set of financial statements for Kevin's's Lobster Shack excluding a Statement of Cash Flow. (13 marks) For the problem completed in 3 above (4 marks): a. Evaluate whether the company was profitable. b. Explain whether the company could have paid out more dividends to its shareholders and include supporting data? c. Identify whether the company is financed mainly by creditors or shareholders? Using the data from the B Careful financial statements found below compute the following financial statement ratios (6 marks): a. Gross Margin Percentage b. Current Ratio c. Quick Ratio d. Debt to Equity Ratio e. Accounts Receivable Turnover in Days f. Times interest earned Based on the findings in 4 above what are your observations about B Careful? Here is data on the industry average for B Careful's competitors (6 marks): a. Gross Margin Percentage - 42% b. Current Ratio - 3:1 c. Quick Ratio - 2:1 d. Debt to Equity Ratio - 1:1 e. Accounts Receivable Turnover in Days - 15 days f. Times interest earned - 10 times B Careful Company Comparative Balance Sheet (dollars in thousands) 2012ning of Assets Current assets: Cash Marketable securities Accounts receivable 9,852 Inventories 123,657 Prepaid Expenses 9,390 Total current assets . $127,215 103,221 17,621 2011 $ 20,944 41,507 82,370 8,114 Property and equipment, net Other assets Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Short-term bank loans Accrued payables Other current liabilities 15,804 Total current liabilities 338,541 205,350 368,477 17,595 $724,613 244,728 18,100 $468,178 $ 37,034 $ 28,668 16,241 13,138 18,005 13,436 28,811 Long-term liabilities: Bonds payable Other long-term liabilities 4,503 Total liabilities 100,091 71,046 164,020 80,398 8,842 273,953 Shareholders' equity: Preferred shares Common shares and additional paid-in capital 265,679 Retained earnings Total shareholders' equity Total liabilities and shareholders' equity $468,178 155,947 -0- 375,988 75,672 46,552 451,660 312,231 $724,613 Common shares outstanding 2012 - 7,519,600 and 2011 - 5,313,580 B Careful Company Comparative Income Statement (dollars in thousands) Current Prior Year Ye -0- Revenue Cost of goods sold Gross margin Operating expenses: Store operating expenses Other operating expenses 13,932 Amortization General and administrative expenses 28,643 Total operating expenses 213,818 $686,481 325,800 360,681 $465,213 211,279 253,934 $220,693 19,787 $148,757 35,950 22,486 37,258 313,688 Net operating income 40,116 46,993 Gain on sale of investment 0- Plus interest income 6,792 Less interest expense (3,765) Net income before taxes 43,143 Less income taxes (about 38.5%) 17,041 Net income 9,218 - 11,029 (8,739) 58,501 26,373 $ 32,128 B Careful Company Statement of Retained Earnings (dollars in thousands) Retained Earnings, beginning of year $21,513 Add: Net Income for the year 26,102 Less: Dividends paid to common shareholders (1,063) Retained Earnings, end of year $46,552 $46,552 32,128 (3,008) $75,672 $ 26,102