You run a small business you started in 2022. You are generating your Financial Statements. Use the following information:

- Sales Volume: 4000 units/year
- Sales price per unit: $125/unit
- Labor time to produce one unit: 50 minutes
- Cost of Labor for production: $50/hour
- Cost of Raw Material: $45/unit
- Insurance: $550/month
- YOUR salary: $65,000/year (cost to the company)
- Rent: $3400/month
- Tax rate: 28%
- Checking account balance: $5600
- Raw material on hand: 625 units

Your customers owe you $1750 for items purchased in the past year. This year you purchased office equipment and shelving for production for $16,500 as well as purchasing several machines for a total cost = $76,000. You have a short-term loan from the bank for $5600.

On Excel (show each cell's calculation),

1) Create a Net Income Statement and a Balance Sheet (show both short and long-term values)

2) From the Net Income Statement and Balance Sheet created in the problem above, what are the inventory turns per year?

3) From the Balance Sheet created above, what is the current ratio?

Answer rating: 100% (QA)

Solution Net Income Statement and Balance Sheet Net Income Statement ItemAmount Sales Revenue4000 un... View the full answer