Can you make me a Analysis for my case Study? Tom Baxter, sole owner and general manager of Lamrock Ltd$.,$ knew that he was in trouble. Sally

Hedger, the company$$s accountant, had slammed the door and walked out of the building yesterday

afternoon. Hedger had a temper that Baxter had observed in the past, but nothing like the explosion that

occurred yesterday. When Hedger did not show up this morning, Baxter was pretty sure that he had seen

the last of her for this week.

Unfortunately, Baxter had to take a set of Lamrock Ltd$.$s unaudited financial statements for review to the

bank tomorrow. This review was one of the conditions the bank had put in place to maintain Lamrock$$s

loan agreement. This was Lamrock$$s fourth year in business, and Baxter relied heavily on the bank$$s

willingness to finance the firm$$s capital investments needed for operations. He did not want to postpone

the bank meeting for fear that the loans manager would become concerned about Lamrock$$s outstanding

loans.

For several reasons, Baxter did not want to bring in another accountant to prepare the statements: the

accountant would question every number; it was highly unlikely that he could hire an accountant on such

short notice; and the cost would be prohibitive. Consequently, since Hedger had left a printout with the

names of the accounts and their final balances for the fiscal year on her desk $($see Exhibit $1),$ Baxter

decided to put into practice what he learned from his basic accounting course five years ago. He planned

to organize the accounts and their balances and prepare the firm$$s income statement, statement of retained

earnings and the balance sheet$1$

for the fiscal year ending March $31,2014.$ Since Hedger had not yet done

March$$s bank reconciliation and Baxter did not have the necessary information to do one, he would

$$plug$$ for the cash balance on the company$$s balance sheet.

$1$ May also be called the Statement of Financial Position.

Page $2$

Exhibit $1$

ACCOUNT NAMES AND BALANCES AT MARCH $31,2014$

Depreciation expense $$ warehouse and equipment $ $60,000$

Cash $?$

Retained Earnings April $1,2013174,000$

Inventory, March $31,201468,500$

Selling Expenses $161,000$

Inventory, April $1,201387,000$

Income tax expense $($estimate$)38,000$

Mortgage Loan $6\%($due $2020)400,000$

Sales $1,193,500$

Land $565,000$

Other Expenses $39,600$

Common stock $250,000$

Prepaid expenses $16,800$

Loans $$ Equipment $($due $2021)550,000$

Dividends $170,000$

Accounts receivable $92,600$

Interest expense $79,500$

Warehouse and equipment at cost $1,200,000$

Accumulated depreciation $$ warehouse and equipment,

April $1,2013$

$180,000$

Bank loan $$ demand note $375,000$

Taxes payable $12,000$

Accounts payable $67,200$

Other current liabilities $43,600$

Goodwill $12,000$

Administrative expenses $87,200$

Purchases $595,000$

Trading Investments $($short$-$term$)50,000$