Please complete these questions

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) 1 Accounts Payable $ 3,000 13,400 Sort items by statement type, then by category, then by 2 Accounts Receivable liquidity. (b) Verify that Assets = Liabilities + Equity. If not, 3 Accum Depn (Building) 7,800 something wrong. 4 Accum Depn (Equipment) (B) Answer the following questions from the completed 5 Accum Depn (Fixtures) 3,600 statements: 6 Advertising Promotion 3,000 7 Beginning Inventory 18,000 a. Calculate Total 8 Buildings 77,000 Current Assets 9 Cash 6,120 b. Calculate Total Fixed 10 Contracts Payable 6,000 Assets 11 Depreciation Expense 2,000 c. Calculate Total Assets 12 Ending Inventory 18,200 13 Equipment 8,000 14 Fixtures 17,800 d. Calculate Total 15 Insurance Expense 18,000 Current Liabilities 16 Long Term Note 75,000 e. Calculate Cost of 17 Merchandise Inventory 19,200 Goods Sold 18 Miscellaneous Expense 4,000 4,000 f. Calculate Gross Profit 19 Notes Payable 20 Owners Equity 39,160 21 Payment on Building note 34,000 g. Calculate Total 22 Prepaid Expenses 2,040 Operating Expenses 23 Purchases during the year 22,000 h. Calculate Net Profit 24 Salaries Expense 68,000 25 Salaries Payable 5,000 26 Sales 178,000 i. Which Fixed Asset is 27 Suppliers Expenses 7,460 likely the "newest" 28 Utilities Expense 8,000 j. What adjustments to incomes statement needed to reflect cash flow See Job Aid for essential Financial Statement Equations: Income Statement: Revenue - Variable Costs = Grosso Profit - Fixed Costs = Net Profit . Cost of Goods Sold: Opening Inventory + Purchases - Ending Inventory = COGS Balance Sheet: Assets = Liabilities + Equities2. 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 $38 $28 $38 Variable Costs/Unit Contribution per Unit Proforma Income Statement Total Revenue -Total Variable Costs Gross Profit -Total Fixed Costs Net Profit Analysis Gross Margin Net Profit Margin Break Even Units (Week 5) Margin of Safety (Week 5) b. Describe the relationship between Sales and Variable Costs? Sales and Fixed costs? Sales and Gross Profit? Sales and Net Profit? c. What is the difference between fixed and variable costs? d. In order to double quantity of sales, is it better to reduce price or increase advertising? Explain how you would decide the best marketing strategy? e. Would your recommendation change if you considered breakeven units and Margin of Safety