will you answer #5.. I need help for question #5

CRITICAL THINKING CASES P4-10 Ining Finamial Heporta Evaluating Financial Information as a Bank Loan Orneer counts, income taxes, and so on." As a result of a review the following additional information was developed. a. The inventory of maintenance supplies of $6,000 shown os the statement of the maintenance supplis on hand (unused) on December 31, 201%, sh maintenance expense. b. The insarance prembum paid in 2017 was for 2017 and 2018 ; therefore, the prepaid insurance at December 31,2017 , amounted to $2,000. The total insurance premium was debited to prepaid insurance when paid in 2017. c. The equipment cost $40,000 when purchased January 1, 2017. Depreciation expense of $5,000 ba not been recorded for 2017 . d. Unpaid (and unrecorded) salaries at December 31,2017 , amounted to $2,200. e. At December 31,2017 , transportation revenue collected in advance amounted to $7,000. This amount was credited to transportation revenue when the cash was collected. f. The company is subject to an income tax rate of 30 percent. Required: 1. Record the six adjusting entries required on December 31,2017 , based on the preceding add information. 2. Recast the precoding statements after taking into account the adjusting entries. Use the fol format for the solution: 0. Umussion of the adjusting entries caused the following: a. Net earnings to be overstated or understated (select one) by $ b. Total asspts to be overstated or understated (select one) by $ ustments, Financial Statements, and the Quality of Earnings 235 c. Total liabilities to be overstated or understated (select one) by $ 4. Use both the unadjusted and adjusted balances to calculate the following ratios for the company: (a) earnings per share, (b) net profit margin ratio, and (c) return on equity. Explain the causes of the differences and the impact of the changes on the financial analysis. 5. Write a letter to the company explaining the results of the adjustments, your analysis, and your decision regarding the loan