You are the newly appointed accountant for GHI Manufacturing, Inc. and have been tasked with preparing the company’s financial statements for the fiscal year ending June 30, 2024. The following information is available:

• The company had beginning retained earnings of $120,000.
• During the year, GHI Manufacturing reported total sales of $850,000 and incurred a cost of goods sold amounting to $480,000.
• Operating expenses for the year totaled $200,000, which includes depreciation of $40,000.
• The company also earned $10,000 in interest income and paid $5,000 in interest expenses.
• A tax rate of 25% applies to the company’s income.
• Dividends declared and paid during the year amounted to $25,000.

Additionally, the following balances are provided as of June 30, 2024:

Account	Amount ($)
Cash	50,000
Accounts Receivable	75,000
Inventory	100,000
Prepaid Expenses	5,000
Equipment	200,000
Accumulated Depreciation	80,000
Accounts Payable	40,000
Notes Payable	60,000
Common Stock	100,000
Retained Earnings	?

Requirements:

1. Income Statement: Prepare the Income Statement for GHI Manufacturing, Inc. for the fiscal year ending June 30, 2024, showing detailed calculations for gross profit, operating profit, and net profit.

2. Statement of Retained Earnings: Using the net profit from the Income Statement, prepare the Statement of Retained Earnings for the year ending June 30, 2024.

3. Balance Sheet: Based on the information provided, prepare a Balance Sheet as of June 30, 2024. Ensure to compute the ending balance of retained earnings and include it in the Balance Sheet. Verify that total assets equal total liabilities and equity.

4. Financial Analysis: Discuss the company’s financial performance and position by analyzing the profitability, liquidity, and leverage ratios. Provide at least three ratios in your analysis and interpret the results in the context of the company’s overall financial health.