Read the following about this small food truck business and answer the questions below: The Cape Girardeau Foodie Food Truck opened in March 2015. The owner used some of her life savings for a down payment on a bank loan for $160,000 to purchase the truck, equipment for the truck, beginning inventory, licenses, permits and fees. The first year was good and the owner was able to earn a profit - unusual in the foodservice business. She devoted approximately 60 hours per week of her time to the food truck. However, the next year wasn't as good, and the two years after that became even worse. Part of the problem is that the owner started an eBay business in 2017 which is taking a considerable amount of time. Consequently, the truck is used at fewer events - she now spends about 25 hours per week on the food truck business. However, expenses and repayment on the loan remain. The owner is frustrated because the eBay business has yet to show a sizeable profit at all after nearly two years. Examine the income statement and balance sheet for this company on the back of this page). What is the firm doing well and where are the problem areas? Explain. Calculate the following ratios and interpret the results for each year: return on assets and net profit margin Based on the patterns you see in the years 2015 through 2018, prepare a projected income statement for 2019. What would you recommend to the owner of this food truck business? What steps should she take in 2020? This paper will be about 3 to 5 double-spaced pages. Use whatever format you are comfortable with (APA, MLA, Chicago, etc.), but just be consistent throughout the paper. Be sure to properly cite sources, if you use any. And proofread! One point is counted off for every misspelling, punctuation error, capitalization error, grammar error, etc. Cape Girardeau Foodie Food Truck Income Statement 2015 $78,000 $40,000 $38,000 For Year Ended 2016 2017 $52,000 $41,000 $45,000 $38,000 $7,000 $3,000 2018 $36,000 $40,000 ($4,000) $3,000 $2,000 $0 $0 Sales LESS Cost of Goods Sold Gross Profit LESS Marketing Expenses LESS Gn'l & Admin Expenses LESS Depreciation Operating Profit LESS Interest Expense Profit Before Taxes LESS Taxes Net Profit $1,000 $10.000 $24,000 $1,000 $23,000 $9.200 $13,800 $1,000 $10.000 ($6,000) $1,000 ($7,000) $4.000 $11.000) $1,000 $10.000 ($8,000) $1.000 ($9,000) $3.000 ($12,000) $1,000 $10.000 ($15,000) $1.000 ($16,000) $2.800 ($18.800) Balance Sheet ASSETS Cash Accounts Receivable Inventory TOT CURRENT ASSETS Truck & Equipment LESS Accumulated Depreciation NET TRUCK & EQUIPMENT TOTAL ASSETS $24,000 $2,000 $15,000 $41,000 $120,000 $20,000 $0 $18,000 $38,000 $120,000 $2,000 $0 $7.000 $9,000 $120,000 $1,100 $0 $4,300 $5,400 $120,000 $10,000 $20,000 $30.000 $40.000 $110,000 $151.000 $100,000 $138.000 $90,000 $99.000 $80,000 $85.400 DEBT Accounts Payable Short-term Notes Payable Long-term Debt Owner's Capital Retained Eamings TOTAL DEBT $22,000 $1,200 $125,000 $2,000 $800 $ 151,000 $26,000 $1,400 $100,000 $10,000 $600 $138.000 $14,200 $700 $84,000 $100 $0 $99.000 $10.200 $1,200 $74,000 $0 $0 $85.400