Your professional career has commenced! You just finished a meeting with Jag and Elk, two plumbers that merged their start-up plumbing businesses two years ago. Jags residential customers are all on prepaid service contract basis for a fixed fee paid in advance, customers get three years of plumbing services (total $648, $18 per month) regardless of the number of calls, nature of the service, or materials needed. Elks commercial business is a parts delivery service known for having every part in stock and delivered same day so your labor crew doesnt stall out for lack of a part. Both have agreed not to take any salaries from the business and just split dividends after they have paid off all debt. They both have simple lifestyles, so their part-time job on the weekend with a plumbing business in the next town pays their bills until their business is big enough to throw off a living wage. Upon merging their businesses into Jag & Elk Pipes, Jag and Elk obtained a loan and bought a 2014 Nissan truck equipped with plumbing tools and rented a small warehouse in midtown. They pay one part-time worker at the warehouse to manage inventory and customer service. On days when they are on-site for a residential client, they deliver to commercial clients either before work, on their lunch hour, or after the residential jobs each day. Neither Jag nor Elk have any financial background but have kept basic records of activity for tax purposes. Their banker requires a set of accrual basis financial statements annually. They have asked you to help, ACCT4112 Project: Accounting Data Analyses given your new found accounting expertise. In addition to creating the financial statements for the bank, they have requested that you analyze the profitability and liquidity of their company.