Section B: Balance Sheet Build and Analysis (20 Marks) 1. Mars Apparel, a student-run clothing company based out of Queens University, has the following financial information as of August 30, 2022, the end of their fiscal year. 2 Cash ending balance is 65,000 Buildings & Equipment ending balance is $105,846 Accounts Receivables ending balance is $20,000 Common Shares ending balance is $150,000 Inventory ending balance is $45,000 Land ending balance is $278,193 Accounts Payable ending balance is $20,000 Retained Earnings ending balance is $155,039 Buildings & Equipment Accumulated Depreciation ending balance is $47,000 Wages Payable ending balance is $7,000 Short-Term Debt ending balance is $25,000 Taxes Payable ending balance is $5,000 Long-Term Mortgage ending balance is $48,500 10-Year Bond ending balance is $34,500 Interest Payable ending balance is $22,000 Additional Note: The annual profit for the company is $75,000 a) Prepare a Balance Sheet for the company as of August 30, 2022. Ensure you categorize your accounts into Current and Non-Current Assets/Liabilities, and Shareholders Equity. (5 marks) b) Calculate the debt to asset, return on assets, and the quick ratios for the company. How do each of these ratios help you understand a different part of the company, and what do they tell you? (5 marks) 3 2. In September 2022, Mars Apparel faced some challenging times caused by expectations of a nearterm recession. This caused a few changes to their financial position. Please describe the effects of each of the changes through the following method. Example: They took on more short-term debt in the amount of $10,000 Your answer: Cash increases by $10,000 Short-term debt increases by $10,000 a) They bought $25,000 worth of rugby shirts to sell later (2 marks) b) They sold off $50,000 worth of buildings and equipment, with $30,000 going to accounts receivable, and the rest to cash (3 marks) c) They paid off the entirety of their accounts payable balance (3 marks) d) The AMS invested $10,000 cash into the company (2 marks)