Problem 1 You are provided with the following information for Lazuris Enterprises, effective as of its April 30, 2025, year-end. Accounts payable $834 Accounts receivable $810 Accumulated depreciation-equivalent $670 Cash $1,270 Common stock $16,900 Cost of goods sold $1,060 Depreciation expense $335 Dividends $325 Equipment $2,420 Goodwill $1,800 Income Tax expense $165 Income taxes payable $135 Insurance expense $210 Interest expense $400 Inventory $967 Investment in land $14,200 Land $3,100 Mortgage payable (long-term) $3,500 Notes payable (short-term) $61 Prepaid insurance $60 Retained earnings (beginning) $1,600 Salaries and wages expense $700 Salaries and wages payable $222 Sales revenue $5,100 Stock investment (short-term) $1,200 Instructions a. Prepare an income statement and retained earnings statement for Lazuris Enterprises for the year ended April 30,2025. b. Prepare a classified balance sheet for Lazuris Enterprises as of April 30, 2025

Problem 2 The following are financial statements of Ohara Company: ______________________________________________________________________________ Ohara Company Income Statement For the Year Ended December 31, 2025 _____________________________________________________________________________________ Net sales $2,218,500 Cost of goods sold 1,012,400 Selling and administrative expenses 906,000 Interest expense 78,000 Income tax expense 69,000 Net income $ 153,100 _________________________________________________________________________________ Ohara Company Balance Sheet December 31, 2025 _____________________________________________________________________________________ Assets Current assets Cash $ 60,100 Debt investment 84,000 Accounts Receivable (net) 169,800 Inventory 145,000 Total current assets 458,900 Plant assets 575,300 Total assets $1,034,200 Liabilities and Stockholders Equity Current liabilities Accounts payable $ 160,000 Income taxes payable 35,500 Total current liabilities 195,500 Bonds payable (long-term) 200,000 Total liabilities $395,500 Stockholders equity Common stock $ 350,000 Retained earnings 288,700 Total liabilities and stockholders equity 1,034,200 Additional information: The weighted-average common shares outstanding during the year was 50,000.

Instructions a. Compute the following values and ratios for 2025. >Working capital (for 2024, working capital was $160,500) >Current ratio (for 2024, current ratio was 1.65:1) >Debt to assets ratio (for 2024, debt to assets ratio was 31%) >Earnings per share (for 2024, earnings per share was $3.15) b. Using your calculations from part (a), discuss changes from 2024 in liquidity, solvency, and profitability