H19 Jx A B D E F G I James Kirk, a connoisseur of fine craft beers, opened Kirk's Beers in Collegetown on 1 January 2020. 2 The shop specializes in a selection of seasonal craft beers. You have been hired as manager and 3 your duties include maintaining the store's financial records. Below is the trial balance for Kirk's 4. Beers as of 30 June 2020. 5 6 Kirk's Beers 7 Trial Balance 8 30-Jun-20 9 Debit Credit 10 Cash 11 12 21,670 2,320 5,800 3,290 13,200 10,500 Accounts Receivable Inventory Prepaid Expenses Equipment Furniture and Fixtures 13 14 15 16 17 Accounts Payable Notes Payable Common Stock 6,755 5,000 41,000 22,475 18 19 Sales Revenue 20 Cost of Goods Sold 21 10,500 5,700 1,075 22 23 460 Wage Expense Advertising Expense Insurance Expense Interest Expense Income Tax Expense Total 24 320 25 395 26 75,230 75,230 TRUE 27 Required: 1. From the trial balance, prepare a classified income statement for the six months ended 30 June. 2. After six months in business, James asks you to measure how effectively sales and expenses of the business are being managed. Compute the net profit margin for Kirk's Beers and compare to industry average. Discuss the results. The following data is available: Industry Total assets 58,500 Total liabilities 22,000 Hint: you must calculate net profit margin for both Total equity 36,500 the company and the industry using only the correct Sales revenue 92,500 data provided (there is more data than you need) Net income 22,750