Prepare the income statement, retained earnings statement and balance sheet at and for the month of January

Answer the questions in the tab labeled financial statement analysis

QUESTIONS

How do you feel this company performed in its first month? Support your reasons.

Provide 3 financial statement ratios based on the information provided in the financial statements to support your conclusion in part 1.

Provide 4 recommendations for the owner to ensure the business becomes more profitable and an eventual success?

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AutoSave OFF 3 Classroom Accounting Cycle Exercise - Version 3 (2) Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Calibri (Body) v 11 AA ab Wrap Text General Insert v EX AY- O. Paste BI UV V V A v Merge & Center v $ ~ % 9 408 28 Conditional Format x Delete v Cell Format Sort & Formatting as Table Find & Ideas Styles Filter Select Sensitivity Open recovered workbooks? Your recent changes were saved. Do you want to continue working where you left off? Yes No N15 4 X V fx B C D E F G H J K L M N O P Q R S T U V W Account Debit Credit 2 Cash 250,060 3 Accounts receivable 30,000 4 Officce supplies 500 Office equipment 50,00 6 Prepaid insurance 2,000 7 Rent expense 1,750 Advertising expense 1,310 Notes peyable 450,000 10 Salaries expense 10,50 11 Land 300,000 12 Repair and maitaince 2,000 13 Notes recievable 24,000 14 Investment in stocks 150,000 15 Utilities expense 5,375 16 Prepaid rent 1,750 17 Dividends 0,000 18 Taxes expense 490 19 Accounts peyable 6,185 20 Unearnd service revenue 114,750 21 Service revenue 62,850 22 Common stock 275,000 23 Depreciation expense 550 24 Interest Expence 1,875 25 Supplies expense 550 26 Accumulated depreciation 550 27 Interest peyable 1875 28 Salaries payable 1500 29 Interest Recievable 200 30 Interest income 200 31 32 33 34 35 36 912,910 912,910 37 38 39 40 41 D Transactions Journal Entries Trial Balance Adjusting Entries Ledger Balances Adjusted Ledger Balances Adjusted Trial Balance Financial Statements Financial Statement Analysis + Enter + 100%