The local farming association and nearby First Nations community have joined forces to open up a greenhouse. The busines

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The local farming association and nearby First Nations communityhave joined forces to open up a greenhouse. The business name forthis greenhouse venture is “Good Food”. There will be strong demandfor the company’s products as the local Farmer’s Market is verybusy with customers seeking fresh produce. The greenhouse will aimto provide employment opportunities to the unemployed looking forjob experience. You have been hired as the “Office Coordinator” andyou are responsible in preparing the financial information for theupcoming board of directors meeting. The opening balance sheet forthis greenhouse on January 1, 2022, included the following: Cash$100,000, Inventory $150,000, Equipment $600,000 cost, AccountsPayable $50,000, Long Term Bank Loan $400,000 and Equity. You areresponsible for determining the Equity value. For the 2022 year,the following income and expenses are projected: sales revenue of$1 Million, cost of goods sold of $400,000, depreciation of$60,000, wages of $280,000, utilities of $110,000, rent of $50,000,interest of $20,000 and advertising expenses of $40,000. The IncomeStatement period is from January 1st to December 31st. The debtrepayment for the long term loan of $400,000 will be $50,000principal plus $20,000 interest (5% per year) for the first year.As the Office Coordinator, you need to prepare the answers orinformation to the following “Information Required” for theupcoming Board of Directors meeting. Information Required 1)Prepare the opening balance sheet and projected Income Statementfrom the information provided for the 2022 year. 2) From theBalance Sheet, calculate the debt to equity ratio, the debt toassets ratio, and the current ratio. Explain why it is important tohave equity. 3) For the projected December 31, 2022, incomestatement, calculate the following: Gross profit to sales ratio andnet income to sales ratio. Explain how much net income is requiredfrom this business venture and why. 4) The equipment as of openingday is depreciated using the straight-line method having anexpected life of 10 years and a terminal (salvage) value of$40,000. Calculate the depreciation expense assuming no furtherassets were purchased for years 1 and 2 along with the accumulateddepreciation and net book value at the end of 2 years. Explain whydepreciation is referred to as a non-cash expense. 5) At the end ofthe first year, there is the possibility of expanding theGreenhouse that would require an additional bank term loan of$500,000 that would have to be repaid back evenly over 5 years at a5% interest rate. Provide your explanation if the greenhouse hasthe financial ability to take on this possible expansion at the endof one year.
I NEED ANSWER FOR THE 5TH QUESTION PLEASE