Summary Report After you have completed preparing all the financial statements, analyze the statements and write a short report summarizing your findings. Use the template provided in the What to Submit section to complete your report. 4. Summary: Write a summary of what the financial statements indicate about the company's financial health and performance. A. Purpose: What kind of information would these financial statements provide to various aspects of the business? B. Analysis: What is the company's cash position, its net income as a percentage of sales, and its current liabilities to current assets position? A Company Income Statement For Qtr. Ending 12/31/20xx Revenues:- Bakery Sales Merchandise Sales Total Revenue less :-COGS Gross Profit $60,000 $221 $60,221 $158 $60,063 A Company Statement of shareholder Equity For Qtr. Ending 12/31/20xx Common Stock Retained Earnings Total Beginning Balances, Septen $30,000 $0 $30,000 Issued common stock $0 $0 SO Net income $32,124 $32,124 Dividends (-10000) (-10000) Ending Balance, December $30,000 $22,124 $52,124 Operating Expense:- Baking Supplies Expense Rent Expense Interest Expense Insurance Expense Depreciation Expense Misc. Expense Office Supplies Expense Business License Expense Advertising Expense Wages Expense Telephone Expense Total Operating Expense $19,400 $4,500 $150 $200 $208 $250 $550 $375 $200 $1,956 $150 $27,939 A Company Balance Sheet For Qtr. Ending 12/31/20xx Liabilities Current Liabilities: $51,437 Interest Payable $1,100 Accounts Payable $176 Wages Payable $1,500 Total Current Liabilities $1,000 $50 Long Term Liabilities: $9,700 Notes Payable $ 64,962 Total Long Term Liabilities Assets Current Assets: Cash Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Office Supplies Accounts Receivable Total Current Assets Non Current Assets: Baking Equipment Accumulated Depreciation Baking Equipment (net) $150 $7,000 $480 $7,630 $10,000 $10,000 Net Income $32,124 $5,000 Share Holder's Equity (-208.33) Common Stock $4,792 Retained Earnings Total Equity $69,754 Total Liability and Equity $30,000 $22,124 $52,124 $69,754 Total Assets Closing Journal Entry Date Accounts/Description Debit($) Credit($) 31-Dec Bakery Sales $60,000 Merchandise Sales $221 Income Summary $60,221 (To close Revenue account) $28,097 31-Dec Income Summary Baking Supplies Expense Rent Expense Interest Expense Insurance Expense Depreciation Expense Misc. Expense Office Supplies Expense Business License Expense Advertising Expense Wages Expense Telephone Expense COGS (To close Expense account) $19,400 $4,500 $150 $200 $208 $250 $550 $375 $200 $1,956 $150 $158 A Company Post Closing Trail Balance For Qtr. Ending 12/31/20xx Accounts Debit($) Credit($) Cash $51,437 Baking Supplies $1,100 Merchandise Inventory $176 Prepaid Rent $1,500 Prepaid Insurance $1,000 Baking Equipment $5,000 Accumulated Depreciation $208 Office Supplies $501 Accounts Receivable $9,700 Notes Payable $10,000 Interest Payable $150 Accounts Payable $7,000 Wages Payable $480 Common Stock $30,000 Retained Earnings $22,124 Total $69,962 $69,962 31-Dec Income Summary Retained Earnings (To close Income Summary $32,124 $32,124 $10,000 31-Dec Retained earning Dividends (To close Dividend account) $10,000
