Your aunt meets with you again and says the following transactions might need to be considered...

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Your aunt meets with you again and says the following transactions might need to be considered in the finalizing the statements. 1) The annual interest on the long term loan has not been recorded. 2) A final evaluation of inventory still needs to be done. Luckily your aunt had already collected all the information for these 2 adjustments in an excel spreadsheet. You make sure to write out the required journal entries before adding them to the unadjusted trial balance. Once you make these adjustments to the unadjusted trial balance, you decide to prepare, in good form, the classified statement of financial position, statement of retained earnings and multi step statement of income. You know the banker will expect to see these statements in proper order. The bank wasn't specific on the ratios they wanted so you went ahead and calculated the ratios you thought the banker would need for the meeting. You decided to calculate the current ratio, working capital, Inventory turnover in days, gross profit margin ratio and the profit margin ratio. You write out the formulas, show your detailed calculations and the meaning of the ratios you calculated in your own words to make sure you understood what they mean just in case the banker asked you about them. Your aunt meets with you again and says the following transactions might need to be considered in the finalizing the statements. 1) The annual interest on the long term loan has not been recorded. 2) A final evaluation of inventory still needs to be done. Luckily your aunt had already collected all the information for these 2 adjustments in an excel spreadsheet. You make sure to write out the required journal entries before adding them to the unadjusted trial balance. Once you make these adjustments to the unadjusted trial balance, you decide to prepare, in good form, the classified statement of financial position, statement of retained earnings and multi step statement of income. You know the banker will expect to see these statements in proper order. The bank wasn't specific on the ratios they wanted so you went ahead and calculated the ratios you thought the banker would need for the meeting. You decided to calculate the current ratio, working capital, Inventory turnover in days, gross profit margin ratio and the profit margin ratio. You write out the formulas, show your detailed calculations and the meaning of the ratios you calculated in your own words to make sure you understood what they mean just in case the banker asked you about them.