Question

Submit a paper which is 2-3 pages in length (no more than 3-pages), In this paper, in addition to presenting the computed answers, please also discuss how you arrived at each answer the accounting problem asks. The accounting problem presents a company’s balance sheet, income statement, and statement of cash flows for a theoretical company, Polly’s Pet Products. Each of these statements has blank lines. Determine the values that would be appropriate for each blank line. Provide a narrative of how you arrived at each value. Include in this narrative an explanation of:
1) the financial statement being completed;
2) the account being valued;
3) its relationship to the other financial data.

For example, if the accounts payable (AP) line was missing, describe what a balance sheet is and explain that you can derive the AP value based on knowing all the other values of the current liabilities section. Then explain what an account liability is, as well as why it would belong in the current liabilities section of the balance sheet. Finally, analyze, evaluate, and develop a conclusion about the company’s performance based on the completed statements.To complete this assignment, refer to the income statement, balance sheet, and statement of cash flows of Polly’s Pet Products.

Please Note:

Superior papers will mention and explain the following elements when responding to the assignment question:

• Provide correct balances for the blank financial account lines.
• Define the financial statement being completed.
• Discuss how the values were determined.
• Define and explain each account line that was completed.
• Analyze, evaluate, and develop conclusions about the company’s performance based on the financial information.

Please give explanations as to how you arrived at your answer.

Polly's Pet Products
Income Statement as of December 31, 2018
Revenues	650 000
Operating Costs
Gross Profit	205 000
General and Administrative Expenses	75 000
Operating Income
Other Expense	60 000
Income Before Provision for Income Taxes
Provision for Income Taxes	5 000
Net Income
Retained Earnings, Beginning Balance	103 500
Net Income
Retained Earnings, Ending Balance

Answer 1

	Polly's Pet Products
1.)	Income Statement as of December 31, 2018	Amount $
	Revenues	650,000
	Operating Costs ( Revenue - Gross profit )	445,000	(650,000 - 205,000 )
	Gross Profit	205,000
	General and Administrative Expenses	75,000
	Operating Income ( Gross profit - General & administrative expenses )	130,000	(205,000 - 75,000 )
	Other Expense	60,000
	Income Before Provision for Income Taxes	70,000	(130,000 - 60,000 )
	( Operating Income - Other expense )
	Provision for Income Taxes	5,000
	Net Income	65,000	(70,000 - 5,000 )
	( Income Before Provision for Income Taxes - Provision for Income Taxes )
2.)	Statement of Retained earnings	Amount $
	Retained Earnings, Beginning Balance	103,500
	Net Income	65,000
	Retained Earnings, Ending Balance	168,500	(103,500 + 65,000 )
	( Retained Earnings, Beginning Balance + Net Income )

Conclusion:-

Based on the Financial statement i.e. Income statement , we can say that the Company is profitable

& its net profit margin is 10% (65,000 / 650,000 ).