BUS591 Financial Statement and AnalysisWeek 1 Homework Assignment TemplatesInstructions: Only enter data in the yellow boxes. The remaining areas are already completedfor you.Submit to the assignment box before the due date. (Late assignments will receive a latepenalty).Grading Rubric: There are a total of 68 questions for you to answer (as determined by theyellow box). Each item is worth 0.06 points for a total of 4.00 points.P1-3B, Prepare an income statement, retained earnings statement, and balance sheet;discuss results.Instructions:(a) Prepare an income statement and a retained earnings statement for the month of May anda balance sheet at May 31, 2014.SHAWS GARDEN(b) Briefly discuss whether the companys first month of operations was a success.Enter text answer here.(c) Discuss the companys decision to distribute a dividend.Enter text answer here.P1-4B, Determine items to be included in a statement of cash flows, prepare a cash flowstatement and discuss the results.Instructions:(a) Determine which items should be included in a statement of cash flows and then preparethe statement for Preacher Corporation.PREACHER CORPORATIONStatement of Cash FlowsFor the Year Ended December 31, 2014Cash flows from operating activitiesActivityAmountActivityAmountNet cash provided by operating activitiesCash flows from investing activitiesActivityAmountActivityAmountNet cash used by investing activitiesCash flows from financing activitiesActivityAmountActivityAmountNet cash provided by financing activitiesNet increase in cash(b) Comment on the adequacy of net cash provided by operating activities to fund thecompanys investing activities and dividend payments.Enter text answer here.(Continued)AmountAmountAmountAmountP2-7B, Compute values and ratios for the following; discuss results.Instructions:(a) For each company, compute these values and ratios:be sure to show your computations!Working CapitalCurrent ratio (round totwo decimal places)Debt to total assets ratioFree cash flowEarnings per share(b) Compare the liquidity, profitability and solvency of the two companies.Enter text answer here.
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