Q: Case Assignment (Good Food Greenhouse) (Situation) The local farming association and nearby First Nations community have joined forces to open up a greenhouse. The business name for this greenhouse venture is Good Food. There will be strong demand for the companys products as the local Farmers Market is very busy with customers seeking fresh produce. The greenhouse will aim to provide employment opportunities to the unemployed looking for job experience. You have been hired as the Office Coordinator and you are responsible in preparing the financial information for the upcoming board of directors meeting.The opening balance sheet for Fresh Food on January 1, 2023, included the following: Cash $120,000, Inventory $200,000, Equipment $800,000 cost, Accounts Payable $100,000, Long Term Bank Loan $400,000 and Equity. You are responsible for determining the Equity value. For the 2023 year, the following income and expenses are projected/forecasted: sales revenue of $2 Million, cost of goods sold of 40% of sales, depreciation of $100,000, wages of $400,000, utilities of $150,000, rent of $100,000, interest of $40,000 and advertising expenses of $100,000. The financial statement period is from January 1st to December 31st. The debt repayment for the long-term loan of $400,000 will be $100,000 principal plus interest per year with $40,000 interest (10% per year) for the first year. As the Project Coordinator, you need to prepare the answers and information to the following Information Required for the upcoming partnership meeting. Information Required 1) Prepare the opening balance sheet and forecasted Income Statement from the information provided for the 2023 year. 2) From the Balance Sheet, calculate the debt to equity ratio, the debt to assets ratio, and the current ratio. Explain what factors need to be considered when determining if a ratio is satisfactory. Provide your opinion on the balance sheet ratios that were calculated. 3) For the forecasted December 31, 2023, income statement, calculate the following: gross profit to sales ratio and net income to sales ratio. Provide your assessment if the profits earned are sufficient for the forecasted expenses that are projected to be incurred. 4) The equipment as of opening day is depreciated using the straight-line method having an expected life of 8 years and a nil terminal (salvage) value. Calculate the depreciation expense assuming no further assets were purchased for years 1 to 3 along with the accumulated depreciation and net book value at the end of each year. Explain the benefit, if any, in deducting depreciation expense. 5) At the end of the first year, there is the possibility of expanding the Greenhouse that would require an additional bank term loan of $750,000 that would have to be repaid back evenly over 3 years at a 10% interest rate. The net income after all expenses from this expansion is forecast to be $100,000 per year. Provide your explanation if Fresh Food should pursue this expansion