PART 1

Reference:

Breadwinner Bakeeshop's balance sheet income statement shows that the ownership ratio in 2009 is 50 %. this means that half of the bakeshop's investments come from its creditors. while in 2010, the owner has only 40% funds in the business. so the greater portion of the investment is now with the creditors which own 60% of the enterprise.

WORKSHEET 1 ArteCulante ENTERPRISES Income Statement For the Year Ending May 30, 2009 Sales 300,000 Cost of Goods Sold Beginning Inventory 22,500 Purchases 196,250 Less: Ending Inventory 31,250 Gross Profit Margin () 112,500 Operating Expenses Owner's Salary 9,000 Wages 36,750 Commissions on Sales 7,500WORKSHEET 2 ArteCulante ENTERPRISES Projected Income Statement For the Year 2010 Sales 625,000 Cost of Goods Sold Beginning Inventory 31,250 Purchases 406,250 Less: Ending Inventory 62,500 Gross Profit Margin () Operating Expenses Owner's Salary 10,000 Wages 65,000WORKSHEET 3 ArteCulante ENTERPRISES Balance Sheet May 30, 2009 LIABILITIES ASSET Current Asset: Current Liabilities Cash 3,250 Accounts Payable 29,750 Accounts Receivable 25,000 Accrued Expenses 500 60.000 Inventory 31.250 Prepaid Expenses 500 Long-term Liabilities Fixed Assets: Mortgage on Land & Building 15,000 Land 6,500 Bank Loan 40,000 Buildings 5,000 12,500 TOTAL LIABILITIES Equipment 30,000 Less Accumulated Depreciation) (9,000) Other Assets OWNER'S EQUITY 100,000 TOTAL ASSETS TOTAL LIABILITIES & OWNER'S EQUITYAdvertising & Promotions 2,500 Telephone & Electricity 2,500 Bank Service Charges & Interest 1,250 Insurance 3,000 Depreciation Expense Miscellaneous Expense 5,000 Net Profit Before Tax 30,000 Income Tax 12.000 Net Profit After TaxCommissions on Sales 31,250 Advertising & Promotions 93,750 Telephone & Electricity 3,750 Bank Service Charges & Interest 3,750 Insurance 1,250 Depreciation Expense 5,000 Miscellaneous Expense 5,000 Net Profit Before Tax Income Tax 25,000 Net Profit After Tax