XSA Ananas (thousands omitted): Cash On Hand Cash In Bank Accounts Receivable Supplies Inventory Merchandise Inventory, January 1 Prepaid Interest Store Equipment Office Furniture & Fixtures Accounts Payable Loans Payable Creda, Capital Credo, Personal You have been engaged to prepare the financial statements for Credo's Auto Supply at the close is annual calendar period on December 31, 2018 Its general ledger shows the following P 48 Sales 375 Output Tax 897 64 Sales Discount 107 3 Purchases 16 310 165 Input Tax 68 6 Purchase Discounts 4 144 Freight In 1 50 Freight Out 13 8 Office Salaries Expense 17 100 Sales Salaries Expense 82 470 Utilities Expense 90 26 Rent Expense 108 Additional data for adjustment (thousands omitted): 1) Merchandise on hand on December 31, 2018 is 50% of the total available for sale during the period. 3) Supplies used up amounted to P2 of which Pl was for office use. 3 The estimated life of the store equipment is 10 years, P60 of which represented Credo's investment on January 1 of the current year with the balance acquired six months after. 4 The office furniture & fixtures has a depreciation rate of 20% per year. 3) A note for 120 days was discounted at 18% by the bank on the loan obtained from them on December 11, 2018 6) Rent Expense represents one year rent paid on July 1, 2018. One fourth of the space was Unpaid utility bills amounted to P4. One fourth of utilities was for office use Required: 1. Prepare a 10-column worksheet. Prepare an income statement using the function of expense format. Prepare a properly classified statement of financial position supported by a capital Prepare the closing entries and the post closing trial balance. for office use. statement Prepare reversing entries. Compute for the following ratios: 2) profitability ratio (net incomeet sales) which must not be less than 10%. Is the b) liquidity ratio (current assets/current liabilities) which is satisfactory at a ratio of more business profitable? 321