1: Prep Ratio Analysis

2: Prep Break Even Analysis

Jane's Skateboards Inc. Jane's Skateboards Inc. Jane's Skateboards Inc. Income Statement Statement of Retained Earnings Balance Sheet For the Month Ending July 31 For the Month Ending July 31 July 31 Revenues: Retained Earnings, July 1 Assets: Sales Revenue $12,600 Add: Net Income $1,295.00 Cash $60,600 Total Revenue $12,600.00 Subtotal $1,295.00 Store supplies $250.00 Less : Dividends $1,000.00 Prepaid Insurance $5,500.00 Expenses: Retained Earnings, July 31 $295.00 Merchandise Inventory $18,700.00 Cost of Goods Sold $6,300 Store fixtures $16,000.00 Store Rent Expense $3,000 Less: Accum. Dep - Fixtures. $160.00 Telephone Expense $200.00 Total Assets $100,890.00 Insurance Expense $500.00 Store Supplies Exp. $350.00 Liabilities and Stockholders' Equity Depreciation Exp. $160.00 Liabilities: Income Tax Expense $295.00 Accounts Payable $300.00 Electric Expense $500.00 Income Taxes Payable $295.00 Total Expenses $1 1,305.00 Total Liabilities $595.00 Net Income $1,295 Stockholders' Equity: Common Stock $100,000.00 Retained Earnings $295.00 Total Stockholders' Equity $100,295.00 Total Liabilities & Stockholders' Equity $100,890.00Title Debit Credit Cash $60,600.00 Store Supplies $250.00 Prepaid Insurance $5,500.00 Merchandise Inventory $18,700.00 Store Fixtures $16,000.00 Accumulated Depreciation Fixtures $160.00 Accounts Payable $300.00 Income Tax Payable $295.00 Common Stock $100,000.00 Retained Earnings $295.00