Referencing Reid's Ride's Part 1. It has been three years and Reid's business has done very well. Sales have increased to 725 bikes sold each year. Expenses have been maintained at a 5% increase while cost of goods sold have remained steady at a 3% increase. (Increases were compounded over the past three years. Rent did not change and interest on the original loan of $50,000 for 5 years remained at 6.5%. You must calculate the current loan balance to determine the current interest charge) Cash increased to $18,000 and savings has also increased to $40,000, inventory increased to 90 bikes, accounts receivable is now $5,200 while accounts payable has increased to $4,800. Office equipment is now at $22,000. All other items remained the same. Reid's business has expanded and he is receiving calls from all over the area. Reid expects sales for this next year to be 800 bikes. Because of the increased sales Reid has decided to hire two full time employee and one part time employee. The part time employee will maintain the web site, answer phone calls and assist with billing. One employee will be the assistant manager and assist Reid in building the bikes and a second will assist with inventory, and shipping. Reid believes that the salaries for the three people will be: Employee 1: Part Time 20 hours per week at $10.00 per hour. Employee 2: Inventory and shipping 40 hours per week at $12.00 per hour Employee 3: Assistant manager 40 hours per week at $15.00 per hour 1. Generate a new income statement that illustrates the profit or loss for the year ending sales of 725 bikes. 2. Generate a new profit and loss statement that reflects Reid's projected sales of 800 bikes. Include the ending expenses you calculated in #1 above. Do not include the new employees. (NOTE you will need to calculate the loan balance at the end of the three year period to determine the current interest charge) 3. Generate a second projected profit and loss statement that includes sales of 800 bikes and the new employees. In addition Reid expects a salary of $40,000. (Do not include taxes in this calculation) 4. Develop a comparative balance sheet that compares Reid's Rides today as compared to three years ago. In a narrative analysis explain any changes. 5. In a narrative analysis of approximately 750 to 1000 words; Did Reid's Rides show a profit with sales of 800 bikes, with the new employees and his salary of $40,000? Explain in some detail your analysis. If he is able to show a profit how much did he make? If he did not show a profit how many more sales must he have to break even? What measures must he take to show a profit?