Part 3: Using the following figures from Rodriguez Art Studio's Balance Sheet. Figures are Sales Revenue $91,000, Stock $20,000, Current liabilities $35,000 and Current Assets $110,000. c) Comment on the liquidity position the the Studio.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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                                   ONLY ANSWER PART 3

Part 1: Giselle Rodriguez owns Rodriguez Art Studio in Havana, Cuba. It has fixed overhead costs of $3,000 per month. The variable cost is $5 and the price is $20, per person per art lesson. There are typically 500 customers each month. 

a) Construct a fully labeled break even chart for Rodriguez Art Studio 

Part 2: Using the following figures from Rodriguez Art Studio's. Figures are: Interest $8,000, Tax $9,200, Cost of Goods Sold $200,000. Net Profit before Interest and tax $100,000. Slaes Revenue $450,000.

b) Construct a fully labeled Income Statement for Rodriguez Art Studio as of 31 December 2018. 

Part 3: Using the following figures from Rodriguez Art Studio's Balance Sheet. Figures are Sales Revenue $91,000, Stock $20,000, Current liabilities $35,000 and Current Assets $110,000.

c) Comment on the liquidity position the the Studio.

 

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