Task 2 - Ratio Analysis, Bank Reconciliation and Receivables 40 MARKS Luke Jones, owner of LJ Corporation approached Topeka Bank for a loan to expand operations. LJ Corporation provided the following financial reports for the last 2 fiscal years who have in return asked for some additional information. LJ have come to the firm for assistance. LJ Corporation Balance Sheet December 31 2021 2020 ASSETS Cash 18,200 12,500 Notes Receivables 148,000 132,000 Accounts Receivables 143,600 140,500 Allowance for doubtful Account (11,800) (15,000) Inventories 105,000 50,000 Building & Equipment (net) 1,049,000 1,020,500 Land Total Assets EQUITY & LIABILITIES Accounts payable Interest payable 400,000 400,000 1,852,000 1,740,500 Notes payable Shares Retained earnings Total Assets 79,000 91,000 19,000 16,000 166,000 151,500 1,200,000 1,200,000 388,000 282,000 1,852,000 1,740,500 Sales Revenue Cost of Goods Sold Gross Profit LJ Corporation Income Statement for the year ended December 31 2021 2,000,000 Operating expenses Net Income Additional Information: 2020 1,700,000 830,000 725,000 1,170,000 975,000 804,000 678,000 366,000 297.000 2019 information for Net Accounts Receivables was $104,200 and Total Assets was $1,650,000. Notes Payables is due in 2024 Allowance for doubtful debt is a credit balance. LJ noticed that the balance in their Cash account at the end of December 31, 2021, differs from the Balance per Topeka Bank Statement ($32,400) and is concerned that they would not get the loan because of this variance. In your review you notice the following: Page 3 of 5