Statement of income

Income
bakery sales		60,000.00
merchandise sales		221.00
Bills
cost of goods sold		157.6
license fees		375.00
Telephone Expenses		90.00
salary expenses		1,956.00
rental costs		4,500.00
Several expenses		250.00
Baking supplies expenses		19,400.00
insurance costs		200.00
depreciation costs		208.33
Miscellaneous Supply Expenses		550.00
selling expenses
advertising expenses		200.00
Interest expenses		150.00
Total		28.036,93
Net Income		32,184.07

Account status

Assets					Liabilities and owners' equity
	Current assets					Common actions	$20,000.00
	Money		47.896,75			Retained earnings	$29,184.07
	baking supplies		$1,100.00
	Prepaid insurance expense		$1,000.00			Pay	$10,000.00
	accounts receivable		$10,521.00			Salaries to pay	$480.00
	prepaid rent		$1,500.00			interest to pay	$150.00
	Miscellaneous Supplies		$50.00			Accounts payable	7000
	Merchandise inventory		$175.65
	Total		$62,243.40
						Total	$66,814.07
	baking equipment	$5,000.00
	Accumulated depreciation	-$208.33	$4,791.67
	total assets		$67,035.07

1. What basis of accounting is used? Because? How do you support responsible practices within the company? 

2. Why? How do you support responsible practices within the company? 

3. What strategies does the company use to ensure responsible accounting practices? Why have these strategies been selected? 

4. When are entries made, how often are statements prepared and reviewed, and why? 

5. Describe the internal controls for cash that exist. 

6. Analyze the results of operations. What do these results tell a company? What is the company doing well and what changes might be needed? What do the financial statements say about the strengths and weaknesses of the company's financial position? Be sure to discuss the role of ratio analysis. 

7. Is the company heading in the right direction? Why or why not? What opportunities can the company explore given its strengths and weaknesses? How would these be beneficial? Support your analysis with information from the financial statements.

Answer rating: 100% (QA)

1 The basis of accounting used in the provided information appears to be accrual accounting This is because the income statement includes both revenue and expenses regardless of whether the cash has b... View the full answer