BA 620 Managerial Finance Group Problem Set 1: This problem Set is based on materials covered in module 1/week 1. It is designed for you to demonstrate your understanding of basic financial statements, financial statement analysis, break-even concepts, financial and operating leverages. Before you start this assignment, please review weeks 1 and 2 materials thoroughly. Finance date of Adams Stores, Inc. for the year ending 2016 and 2017. Items 2016 2017 Sales $3,432,000 $5,834,400 Cash 9.000 7,282 Other Expenses 340,000 720,000 Retained Earnings 203,768 97,632 Long-term debt 323,432 1,000,000 Cost of goods sold 2,864,000 4,980,000 Depreciation 18,900 116,960 Short-term investments 48,600 20,000 Fixed Assets 491,000 1,202,950 Interest Expenses 62,500 176,000 Shares outstanding (par value = $4.60) 100,000 100,000 Market Price of stock 8.50 6 Accounts Receivable 351,200 632, 160 Accounts payable 145,600 324,000 Inventory 715,200 1,287,360 Notes Payable 200,000 720,000 Accumulated Depreciation 146,200 263, 160 Accruals 136,000 284,960 Tax Rate 40% 40% nstructions: As a group, complete the following activities using the financial information above: Part 1: Financial Statements A. Prepare the income statement for 2016 and 2017. Include statement of retaine earnings for 2017