Part B: Practicing the Math 1. (A) Create financial statements in correct format from the list of items provided. Record on blank sheet of paper. (a) Sort items by statement type, then by category, then by liquidity. (b) Verify that Assets = Liabilities Equity. If not, something wrong. (B) Answer the following questions from the completed statements: a. Calculate Total Current Assets b. Calculate Total Fixed Assets c. Calculate Total Assets d. Calculate Total Current Liabilities e. Calculate Cost of Goods Sold f. Calculate Gross Profit g. Calculate Total Operating Expenses h. Calculate Net Profit i. Which Fixed Asset is likely the "newest" j. What adjustments to incomes statement needed to reflect cash flow 2. Pro-forma to evaluate financial impact of marketing strategies: At 10,000 units, Total Fixed Costs are $200,000 and Total Variable Costs are $50,000. Costs and profit vary with output. The item currently sells for $38. The company is considering how to double output to 20,000. Option 1 is doing nothing. Option 2 is reducing price to $28. Option 3 is increasing advertising by $50,000. a. Complete the following chart. Assumptions Base Option 1 Option 2 Option 3 Output Units 10,000 20,000 20,000 20,000 Unit Price $38