Question: Prodigy Systems Ltd. An Introduction to Financial Statement Information Prodigy Systems Led (PSL) was created by Jesse Gemmel, a third-year undergraduate business student. Unable to
Prodigy Systems Ltd. An Introduction to Financial Statement Information Prodigy Systems Led (PSL) was created by Jesse Gemmel, a third-year undergraduate business student. Unable to find work in a business setting. Jesse started up his own business during the summer months. Jesse was able to secure the services of his uncle, Pierre Chalut, to incorporate the company. Prior to attending university. Jesse was involved in various athletic activitics. In addition. Jesse has taken many kinesiology courses during his undergraduate studies. Jesse has always had a passion for fitness and athletics and spends more time in the gym than in class! Therefore, Jesse is trying to turn his passion into his business by incorporating PSL with the purpose of developing and distributing fitness-related products. PSL began operations in April 2020, and continued until the end of August 2020, at which point Jesse had to return to university to complete his degree. Jesse invested $2.500 of his savings into PSL, and also took out a loan of $1.000 from his father. During its first summer of operations. PS designed and sold DVDs for beginners. Jesse recorded the videos with the help of a friend, a professional videographer. who was paid $750 by PSL. The videos focus on basic stretches, workouts, and diet tips. The DVD cover was designed by a professional in the community for $500. Jesse purchased 250 high-quality DVDs for SS each, including the jewel case, and made copies of his video on his personal computer and packaged the videos to be ready for sale. PSI. incurred $200 in printing costs for the front and back covers. The business has a credit card it used to pay for certain expenses, but the credit card had no balance at the end of September. A total of $2.000 was used to purchase new gym equipment for the video shoots. The equipment can be used for at least another three years to produce videos. In addition, PSL spent an additional $400 on the appropriate software to copy the videos. Jesse promoted the video at local gyms, and virally on YouTube and Facebook. During the course of the summer months, PSL sold all 250 copies of the DVD for $30 each. A local gym has purchased 100 copies of the DVD to give away to its members. but promised to pay PSL in December 2020. It is now September 1. 2020. and Jesse is reflecting upon the first five months of PSL's operations. Given that the new semester is about to begin, and tuition payments are coming due, Jesse would like to know how PSL performed. He is fairly excited because PSI, sold $7,500 worth of DVDs, which he believes could be used to cover his tuition and book costs. As of today. Jesse received $1.500 from PSL for his services, which he paid himself at the end of August. Q) Include all the ratios you can calculate given the results of your answers to the REQUIRED questions
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