For the little delights case how do you do this? REQUIRED:

To help you analyze your two investments, complete the following:

$1)2024$ income statement for Petey

$2)12/31/24$ balance sheet for Petey

$3)2024$ income statement for Mamie

$4)12/31/24$ balance sheet for Mamie

$5)$ A paragraph explaining who did better, and why. Support your conclusion with multiple

relevant ratios. $($You will need to research profitability ratios.$)$

As you complete the requirements, round calculations to the nearest euro. Any depreciation

should be calculated on a straight$-$line basis with no salvage value. Both bakeries use a periodic

inventory system.

The following cash reports from Petey and Mamie might be helpful $($Petey and Mamie do not have

accounting backgrounds, so these are not formal Statements of Cash Flows$).$ You may ignore the

timing of the cash flows and assume cash came in as needed.

APPENDIX A $2024$ Cash Transactions for Petey$$s Cupcake Shoppe

Beginning Cash Balance $0$

CASH INFLOWS

Initial investment $60,000$

Cash from customers $435,000$

Borrowed cash from the bank $500,000$

Total Cash Inflows $($receipts$)995,000$

CASH OUTFLOWS

Purchased store and land $520,000$

Purchased equipment $21,000$

Purchase of furniture $11,000$

Interest paid to bank $(11$ months$)27,500$

Cash paid to vendors for inventory $280,000$

Cash paid to Petey for his salary $40,000$

Cash paid to you $($investor$)6,000$

Total Cash Outflows $($disbursements$)905,500$

ENDING CASH BALANCE $89,500$

APPENDIX B $2024$ Cash Transactions for Mamie$$s Cupcake Bakery

Beginning Cash Balance $0$

CASH INFLOWS

Initial investment $60,000$

Cash from customers $640,000$

Total Cash Inflows $($receipts$)700,000$

CASH OUTFLOWS

Purchase of equipment $15,000$

Purchase of delivery truck $30,000$

Cash paid to vendors for inventory $565,000$

Cash paid to Mamie for her salary $40,000$

Rent payments $(15$ months$)22,500$

Total Cash Outflows $($disbursements$)672,500$

ENDING CASH BALANCE $27,500$