To see if he really understands whats going on, Gary asked Claude the following questions. Claude answered most of them correctly, can you?

1. How much revenue did the business produce?
2. What costs did the business have for financing?
3. What can you turn into cash in one year?
4. What did it cost to make your product?
5. What is the value of everything the company owns?
6. How much profit did the company make?
7. How much is the business worth to Claude?
8. How much does the business need for its continuing operation?
1. What debts will take longer than a year to pay?
10. Can this business be considered liquid?

Task I_Accounting in Review Accounting Assignment With Gary's help, Claude has purchase, installed and setup his new accounting software program. In fact he has just printed his first income statement and balance sheet, reproduced below. Basic Industries Income Statement _for year ending 12/31/20XX Sales revenue Less cost of goods sold 356,428 105,200 251,228 Gross marginless operating expenses Marketing Sales and administrative Depreciation Total operating expenses Operating income Less interest expense Income before taxes 30,000 30,000 10,000 70,000 181,228 6,000 175,228 40,000 135,228 Income tax expenseNet income Basic Industries for 12/31/20XXBalance Sheet Assets Current Assets Cash $ 52,400.00 $ 11,300.00 $ 15.600.00 Accounts receivable Inventory Total current assets Fixed assets Property, plant and equipment Accumulated depreciation Liabilities and Owner's Equity $ 79,300.00 Net fixed assets s _$ 80,000.00_70,000.00 $ (10,000.00 Total assets $149,300.00 Current liabilities Accounts payable Note payable to bankDeposits from customers $ 5,300.00 $ 2,700.00 $ 6,000.00 $ 14,000.00 $ 50,000.00 $ 64,000.00 Total current liabilities Long term mortgage Owner's Equity Total liabilities Retained earnings Total Owners' Equity Total liability and equities $ 85.300.00 $ 85,300.00 $149,300.00