Using the data from Income Statement and Balance Sheet prepared by you in step 7 compute the following ratio and Requirement #12: Interpret the ratio computed in step 11. Your interpretation should include the definition of the ratio,its managerial use and how does it reflect the operating performance and financial health of the company.

Thank you

Requirement #7: Prepare the financial statements for Bethany's Bicycle Corporation as of March 31 in the space below You will only be preparing the Income Statement, Statement of Retained Earning, and the Balance Sheet 1 The Statement of Cash Flows is a required Financial Statement, but is not required for this project. Bethany's Bicycle Corporation Bethany's Bicycle Corporation Income Statement For the Month Ending March 31 Bethany's Bicycle Corporation Statement of Retained Earnings For the Month Ending March 31 Balance Sheet March 31 8 Revenues: Retained Earnings, March 1 Add: Net Income $0 Assets: 2,025 Cash 2,025Prepaid Insurance 1,000 Repair Supplies 9 Bicycle Repair Revenue 10 Total Revenue 5,350 $18,060 5,350 Subtotal 2,200 5,800 $26, 140 Less: Dividends Retained Earnings, March 31 12 Expenses: 13 Store Rent Expense 14 Telephone Expense 15 Insurance Expense 16 Repair Supplies Exp 17 Depreciation Exp 18 Income Taxes Expense 19 Electric Expense 20 Total Expenses 21 22 Net Income 23 24 25 26 $1,025 Repair Equipment 1,900 Less: Accum. Depr Total Assets 120$26,140 Retained Earnings $1,025 250 Liabilities and stockholders' Equit Liabilities: Accounts Payable income Taxes Payable Total Liabilities 120 65 $5,050 65 5,115 3,325 Net Income $2,025 stockholders' Equity: Common Stock Retained Earnings Total Stockholders Equity 2,025 1,025 21,025 $26,140 Total Liabilities & stockholders Equity 27 28 29 30 31 $26,140 Rate of Return on Total Assets Formula Computation