VO Profit and Loss January 2018 - December 2020 JAN - DEC 2018 $2,276,200.04 JAN - DEC 2019 $2,018,919.33 JAN - DEC 2020 $2,544,841.58 Income Cost of Goods Sold Cost of Goods Sold Labor & wages Materials Other costs Shipping Wholesale items Total Cost of Goods Sold GROSS PROFIT 535,388.59 358,432.76 17,572.46 120,887.26 369,990.57 $1,402,271.64 15873,928.40 487,623.68 380,220.98 24,162.06 116,725.88 305,975.62 $1,314,708.22 $704,211.11 537,451.37 512,163.80 17,390.32 137,198.74 364,227.35 $1,568,431.58 $976,410.00 27,181.75 13,944.88 14,803.36 1,301.94 8,186.70 5,491.70 2,353.90 40,520.25 12,656.21 28,961.30 700.52 22,029.10 & Expenses Charitable contributions Fees & subscriptions Marketing Meals and Entertainment Office expenses & utilities Payroll expenses - administration Property taxes Reference materials Repair & Maintenance Salaries & wages Supplies & small tools Telephone & internet Travel Total Expenses NET OPERATING INCOME Other Income Other Expenses NET OTHER INCOME NET INCOME 9,733.46 225,935.42 5,568.83 5,077.83 8,657.06 $328,236.83 $545,691.57 $56.08 $0.00 $56.08 $545,747.65 2,408.13 17.25 19,141.09 228,873.71 4,634.71 3,782.59 11,214.06 $374,938.92 $329,272.19 $52.15 $0.00 $52.15 42,285.00 16,440.78 30,472.93 1,926.62 19,368.75 1,027.64 2,479.04 49.95 17,400.04 250,031.63 5,719.65 5,902.69 12,855.67 $405,960.39 $570,449.61 $171.00 $58.48 $112.52 $570,562.13 $329,324.34 Montana Furniture Design Balance Sheet 2018 through 2020 JAN - DEC 2018 JAN - DEC 2019 JAN - DEC 2020 75,266.59 5.27 29,210.44 5.00 6,066.58 $35,282.02 60.118.13 72,271.10 0.00 $132,389.23 0.00 $75.271.86 39,695.00 $39,695.00 $17.681.69 $92,658.71 37.890.29 $37,890.29 $0.00 $113,162.15 212,066.58 $212,066.58 $24.476.40 $368,932.21 -227,052.00 256,300.00 ASSETS Current Assets Bank Accounts Checking Savings Petty Cash Total Bank Accounts Accounts Receivable Accounts Receivable Total Accounts Receivable Other Current Assets Total Current Assets Fixed Assets Accumulated depreciation Equipment Improvements Roof Building addition Total Fixed Assets Inventory TOTAL ASSETS LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts Payable Accounts Payable Total Accounts Payable Credit Cards Line of Credit Total Current Liabilities Long-Term Liabilities Total Liabilities Equity TOTAL LIABILITIES AND EQUITY 30,870.00 27,450.13 $87,576.13 $612,601.00 $792,835.84 -239,224.00 262.447.00 5.300.40 30.870.00 27.450.13 $86,843.53 $588,791.00 $788,796.68 243,369.00 262,447.00 5,300.40 30,870.00 27.450.13 $82,698.53 $294,153.00 $745,783.74 0.00 $0.00 $ -6,021.46 $60,000.00 $53,978.54 $0.00 $53,978.54 $738,857.30 $792,B35.84 35.772.72 $35,772.72 $7,819.82 $0.00 $43,592.54 $0.00 $43,592.54 $745,204.14 $788,796.68 0.00 $0.00 $27,723.07 $0.00 $27.723.07 $112,170.40 $139,893.47 $805,890.27 $745,783.74 3. The owner of Montana Furniture Design is worried about the economy. Specifically, she knows that it has become more difficult to buy and receive materials quickly. In order to avoid future issues the's decided to buy materials of about $1,000,000 at the end of the year (2021) to keep in inventory for next year's production. Will this impact her net income for 2021? If so, how 4. The owner of Montana Furniture Design would like to expand to several other states. To do this, she hopes to get outside funding. She wants to show her 2021 financials to a potential lender. Will this impact advice you may give her about buying a significant amount of inventory at year end 2021? Why or why not