Write a summary of what the financial statements indicate about the companys financial health and performance.

1. Purpose: What kind of information would these financial statements provide to various aspects of the business?
2. Analysis: What is the companys cash position, its net income as a percentage of sales, and its current liabilities to current assets position?

A Company Statement of Stockholder's Equity For Qtr. Ending 12/31/20xx Common Stock Retained Earnings Total Beginning Balances, September 30 0 Issued Common Stock 30,000.00 30,000.00 Net Income 32,124.07 32,124.07 Dividends (10,000.00) (10,000.00) Ending Balances, December 31: 30,000.00 22,124.07 52,124.07 0 0 A Company Balance Sheet As of December 31, 20XX Liabilities and Owners' Equity Current Liabilities: Accounts Payable Wages Payable Interest Payable Total Current Liabilities 7,000.00 480.00 Assets Current Assets: Cash Accounts Receivable Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Office Supplies Total Current Assets 150.00 7,630.00 51,436.75 9,700.00 1,100.00 175.65 1,500.00 1,000.00 50.00 64,962.40 Long Term Liabilities: Notes Payable Total Long Term Liabilities: 10,000.00 10,000.00 Total Liabilities: 17,630.00 Shareholder's Equity: Common Stock 30,000.00 22124.07 Non-Current Assets: Baking Equipment Accumulated Depreciation Baking Equipment (Net) 5,000.00 V show number as negative as the (208.33) total formula will subtract it for you. 4,791.67 Total Equity 52,124.07 Total Assets: 69,754.07 Total Liabilities & Equity 69,754.07 A Company Closing Entries Qtr ending 12/31/20xx Credit Date Accounts 31-Dec Bakery Sales Merchandise Sales Retained Earnings Debit 60,000.00 221.00 60,221.00 28,096.93 31-Dec Retained Earnings Baking Supplies Expense Rent Expense Wages Expense Misc Expense Business License Expense Office Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense COGS 19,400.00 4,500.00 150.00 200.00 208.00 250.00 550.00 375.00 200.00 1,956.00 150.00 157.60 10,000.00 31-Dec Retained Earnings Dividends 10,000.00 A Company Post-Closing Trial Balance Qtr. Ending 12/31/20xx Account Cash Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Baking Equipment Accumulated Depreciation Office Supplies Accounts Receivable Accounts Payable Wages Payable Interest Payable Notes Payable Common Stock Retained Earnings Unadjusted Trial Balance Debit Credit 51,436.75 1,100.00 175.65 1,500.00 1,000.00 4,791.67 (208.33) 50.00 9,700.00 7,000.00 480.00 150.00 10,000.00 30,000.00 22,124.00 Total 69,754.07 69,754.00 A Company Income Statement For Qtr. Ending 12/31/20XX Revenues Bakery Sales Merchandise Sales Total Revenues Cost of Goods Sold Gross Profit 60,000.00 221.00 60,221.00 157.60 60,063.40 Operating Expenses: Baking Supplies Expense Rent Expense Interest Expense Insurance Expense Depreciation Expense Misc. Expense Office Supplies Expense Business License Expense Advertising Expense Wages Expense Telephone Expense 19,400.00 4,500.00 150.00 200.00 208.00 250.00 550.00 375.00 200.00 1,956.00 150.00 Total Operating Expenses: 27,939.00 Net Income 32,124.40