Answer Happy

1. (21 Marks) Based on CharCam Inc.'s year of operations ending December 31", 2021, prepare three separate financial statements: a) Income Statement (7 Marks) b) Statement of Changes in Owner's Equity (5 Marks) C) Balance Sheet (9 Marks) Ensure you include proper titles, dates, categories, and subcategories. The company has a tax rate of 35%. CharCam Inc. Chart of Accounts Debit Credit Land 250,000 Cash 161,000 Cost of Goods Sold 130,000 Salaries expense 120,000 Machinery 120,000 Accounts receivable 95,000 Owner's withdrawals 60,000 Inventory 55,000 Tax Expense 44,800 Utilities expense 21,000 Prepaid Rent 12,000 Rent expense 6,000 Depreciation expense, Machinery 15,000 Interest expense 10,000 IT Expense 5,000 Biscuit Revenue 400,000 Long-term notes payable 350,000 CharCam Inc., capital (January 1, 2021) 150,000 Taxes Payable 44,800 Owner's Investments 40,000 Services Revenue 35,000 Accumulated depreciation, Machinery 30,000 Une arned Revenue 25,000 Salaries payable 20,000 Interest payable 10,000 Totals S 1,104,800 $ 1,104,800 2. (3 Marks) Why do we create financial statements? How can marketers use this information? 3. (3 Marks) Describe liquidity and why a business should care about it?