Evaluation of the companys performance

Assignment Help Financial Accounting

Reference no: EM133492519

Question: The Hair Pro, Inc. opens its first hair salon in Calgary in January 2023. It prepares quarterly financial statements for its owners and external stakeholders. Below is the unadjusted trial balance of The Hair Pro at the end of its first quarter of operation ending on March 31, 2023. The Hair Pro Inc. Unadjusted Trial Balance At March 31, 2023 Cash $ 18,000.00 Prepaid Insurance $ 600.00 Prepaid Rent $ 7,300.00 Shop Equipment $ 9,700.00 Shop Furniture and Fixtures $ 9,700.00 Accounts Payable $ 10,800.00 Deferred Revenue $ 400.00 Notes Payable (Long-term) $ 20,000.00 Common Stock $ 10,000.00 Retained Earnings, Jan. 1, 2023 $ - Service Revenue $ 14,400.00 Supplies Expense $ 5,800.00 Salaries and Wages $ 3,200.00 Utilities Expense $ 700.00 Rent Expense $ 600.00 TOTAL $ 55,600.00 $ 55,600.00

Required: Based on the unadjusted trial balance of The Hair Pro, Inc. above, you are required to prepare/write the following:

1) An income statement

2) A statement of retained earnings

3) Balance Sheet

4) A paragraph stating your evaluation of the company's performance and financial status for the quarter ending March 31, 2023.

In your evaluation, state whether: o the business is profitable; o it can pay its current obligations/liabilities; and o its assets are financed more by debts or equity. Support your discussion with relevant calculations or ratios.

Reference no: EM133492519

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