With Bob's help, Richard 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. Warrior Industries Income Statement for year ending 12/31/20XX 456,428 205.200 251.228 Sales revenue Less cost of goods sold Gross margin Less operating expenses Marketing Sales and administrative Depreciation Total operating expenses 40,000 20,000 10,000 70,000 Operating income 181.228 Less interest expense 7.000 Income before taxes 174 228 Income tax expense 40.000 Net income 134 228 Warrior Industries Balance Sheet for 12/31/20xx Assets Current Assets Cart $ 52,400.00 $ 11,000.00 Accounts receivable $ 15,900.00 $ 79,300.00 Inventory Total current assets Fixed assets Property, plant and equipment Accumulated depreciation Net fixed assets $ 80,000.00 5 (20,000.00) $ 60,000.00 Total asset $139,300.00 55.300.00 Llabilities and Owner's Equity Current liabilities Accounds payable Nole payable to han Deposits from cestomers Total current liabilities Long terme more Total liabilities $ 2,700.00 $4,000.00 $ 14,000.00 540,000.00 5.50,000.00 Own's Equity Retained cartong S85300.00 Total Equity 5 8.300 OG Total ability and equiler 139,300.00 1. How much revenue did the business produce? 2. What costs did the business have for financing? 3. What can you turn into cast in one year? 4. What did it cost to make your product? 3. What is the value of everything the company owns? 6: How much profit did the company make? 7 How much in the business worth to Richard? 8 How much does the business need for its continuing operation Hint: Net Fixed Assets is the purchase price of all fixed assets (Land, buildings, equipment, machinery, vehicles, leasehold improvements) less accumulated Depreciation har debts will take longer than a year to pay 10. Can this business be considered liquid? Hint Current ratio- current assets current liabilities By the rule of thumb, it should be 2 or greater. The current ratio is an indicator or a business! ubility to repay debt when it is due