This financial statement needs to reflect my made up business plan, the company that I made up is home health beauty salon that comes to patients homes to provide all of there beauty needs. attached is a deeper explanation of the company.Phase V: Financial Statements, Balance Sheet and Income StatementThe balance sheet shows the financial picture of a business at a given point in time. It is what theorganization owns versus what they owe.The income statement shows the profit (or revenue-positive position) versus the loss of an organizationover time.For this phase, utilize Merrill Lynch’s handout on reading financial statements.1. Using one year of the balance sheet, determine the organization’s liquidity through the current ratioand debt-to-equity ratio. Use the table below and answer the questions.Left Side Right SideCurrent Assets ________ Current Liabilities _________Fixed Assets _________ Long-Term Liabilities______Other Assets __________ Shareholder Equity ________a. What is the current ratio? Do you have enough current assets to meet your current liabilities?Explain. (Refer to page 23 of the Merrill Lynch handout)b. What is their debt-to-equity ratio? Total liabilities/total shareholder equity =2. Using one year of the income statement, determine the organization’s profitability or fund balanceperspective through operating margin and net profit ratio. Use the table below and analyze the boththe operating margin and net profit ratio. Refer to page 31. Of the Merrill Lynch handout/link. Operating Margin = Operating Income/net sales Net Profit Margin= Net Income/net sales
