Question 33 (8 points) Explain how the Statement of Retained Earnings (alternatively: Statement of Changes in Equity) and the Balance Sheet connect. For instance: How do you derive to one through the other in the preparation of the statements? What accounts or mechanisms connect the two statements? Go beyond a one-sentence answer, but keep answer to the point (approx. 1 paragraph). Marks will be given based on correctness, depth and clarity. Question 31 (12 points) On July 31, Bristlecone Pine Art Ltd, had a \\( \\$ 64,900 \\) balance in Accounts Receivable and a \\( \\$ 4,300 \\) credit balance in Allowance for Uncollectible Accounts. During August, Bristlecone Pine Art Ltd, made credit sales of \\( \\$ 82,000 \\). August cash collections on account were \\( \\$ 67,800 \\); write-offs of uncollectible receivables totalled \\( \\$ 2,200 \\); and an account of \\( \\$ 800 \\) was recovered. Requirement 1: Calculate the updated Accounts Receivable and Allowance for Uncollectible Accounts balances and fill out Blanks 1 and 2. Take notes and upload your rough work to the dropbox after submitting the online exam. Blank \\#1: What is the updated Accounts Receivable balance? Blank \\#2: What is the updated Allowance for Uncollectible Accounts balance? Requirement 2: After careful assessment of the updated accounts receivables, Bristlecone Pine Art Ltd, estimates that a total of \\( \\$ 3,900 \\) won't be collected. Record the estimated uncollectible amount accordingly and submit the journal entries together with your rough work to the dropbox after submitting the online exam. Fill out Blanks 3-6. Blank \\#1: What is the updated Accounts Receivable balance? Blank \\#2: What is the updated Allowance for Uncollectible Accounts balance? Requirement 2: After careful assessment of the updated accounts receivables, Bristlecone Pine Art Ltd, estimates that a total of \\( \\$ 3,900 \\) won't be collected. Record the estimated uncollectible amount accordingly and submit the journal entries together with your rough work to the dropbox after submitting the online exam. Fill out Blanks 3-6. Blanks \\#3-6: Record the estimated uncollectible amount accordingly. Enter the information in the following order: Blank \\#3: Debit account Blank \\#4: Debit \\$-amount Blank \\#5: Credit account Blank \\#6: Credit \\$-amount Required formatting: For \\( \\$ \\)-amounts, only enter the plain number without \\( \\$ \\)-sign, commas etc. Round results to full units (i.e., round to dollar). \\( \\$ 8,433,000 \\) for the years 2021 and 2020 , respectively. The current liabilities total \\( \\$ 107,600 \\) and \\( \\$ 95,800 \\) for the years 2021 and 2020 , respectively. Daily Rain Inc. realized net credit sales of \\( \\$ 3,254,000 \\) and recorded \\( \\$ 2,935,000 \\) in costs of goods sold for the year 2021. Requirement 1: Compute the following ratios for the year 2021. Upload your calculations to the dropbox after submitting the online exam. Blank \\#1: Current ratio (round to two digits) Blank \\#2: Quick (acid test) ratio (round to two digits) Blank \\#3: Inventory turnover (round to one digit) Blank \\#4: Accounts receivable turnover (round to one digit) Requirement 2: Answer the questions below. 2-3 sentences each. Blank \\#5: How do you interpret the liquidity of the company based on your calculations? Blank \\#6: What can you learn from the inventory turnover in this particular case? Blank \\#7: What additional information would you need (or calculate) to gain further insights of Daily Rain Inc.'s financial health and why? Req. 1: Prepare the four required journal entries for the puchase and selling transactions listed in the table above. Use table 1 below for your answer. Req. 2: Calculate Sunshine Pet's ending inventory cost (\\$-amount) at the end of July. Enter the amount in table 2 below. Required format: plain number (no \\$-sign, etc.), round to two digits. Req. 3: Disregard your own calucations for the cost of goods sold and assume they are \\( \\$ 178.00 \\). Calculate the gross profit margin (i.e., gross profit percentage) and enter your response in table 3 below. Required format: enter percentage as plain number (no \\%-sign, etc.), round to two digits. E.g. if the calculated result is 0.64582 , enter 64.58 Sunshine Pets Ltd. holds beginning inventory of 14 bags of health science cat food at a cost of \\( \\$ 16 \\) each, as at July 1 . During the month of July, the company has recorded the following purchases and sales (see table below). Sunshine Pets Ltd. is using the perpetual inventory method and follows the weighted average cost approach. Assume that all purchase and sales transactions have been made in cash. Req. 1: Prepare the four required journal entries for the puchase and selling transactions listed in the table above. Use table 1 below for your answer. Req. 2: Calculate Sunshine Pet's ending inventory cost (\\$-amount) at the end of July. Enter the amount in table 2 below. Required format: plain number (no \\$-sign, etc.), round to two digits. \\( \\$ 2,43 \\) million during the business year. Proceeds from disposal of equipments during the business year equal \\( \\$ 800,000 \\). Issuing new bond with \\( \\$ 2.3 \\) 1. Operating activities million during the business year. Prepaid Rent Expense account balance decreased by \\( \\$ 43,000 \\) during the business year. 2. Investing activities 3. Financing activities 4. Neither part of operating, investing. nor financing activities. Increase in Cash balance of \\( \\$ 0.63 \\) million during the business year. Depreciation expense for the year equals \\( \\$ 0.84 \\) million. Question 35 (14 points) The financial statements of the news magazine publisher Daily Rain Inc. Include the following items: Furthermore, the company shows total non-current assets of \\( \\$ 8,325,000 \\) and \\( \\$ 8,433,000 \\) for the years 2021 and 2020 , respectively. The current liabilities total \\( \\$ 107,600 \\) and \\( \\$ 95,800 \\) for the years 2021 and 2020 , respectively. Daily Rain Inc. realized net credit sales of \\( \\$ 3,254,000 \\) and recorded \\( \\$ 2,935,000 \\) in costs of goods sold for the year 2021. Requirement 1: Compute the following ratios for the year 2021 . Upload your calculations to the dropbox after submitting the online exam