1. With Kim's help, Richard has purchase, installed and setup his new accounting software program. In fact, he has just printed his first income statement and balance sheet, reproduced belon Star Industries Income Statement for year ending 12/31/20XX 356,428 205,200 351,228 Sales revenue Less cost of goods sold Gross margin Less operating expenses Marketing Sales and administrative Depreciation Total operating expenses Operating income Les interest expense Income before taxes Income tax expense Net income 40,000 20,000 10,000 70,000 281228 I 7,000 274,228 140,000 Star Industries Balance Sheet for 12/31/20xx wet Current Assets Cash $ 52.400,00 Account Receivable 3 77,000.00 $ 75,000.00 Inventory Total current annet $ 79,300.00 Feed asset Property, plant and equipment Accumulated depreciation Netfized assets Total set $ 80,000.00 $ 120,000.00) $ 60,000.00 573,370.00 3.300.00 50.200.00 0.00 0.00 Llabilities and Owner's Equity Current Mobile Accounts payable Note able to bank Depost from cestomers Total current abilities Long term marta Total Ouers Equity Mened i Total Own Total ability and 30,000.00 35.000 53300 30.00 "SISI To see if he really understands what's going on, Kim asked Richard the following questions. Richard answered most of them correctly, can you? 1. How much revenue did the business produce? 2. What costs did the business have for financing? 3. What can you turn into cash in one year? 4. What did it cost to make your product? 3. What is the value of everything the company ow? 6 How much profit did the company make? 7. How much is the business worth to Richard? & How much does the business need for its condirising operation? What dents will take longer than a year to pay? 10. Can this business be considered liquid