1. You should find an article or current event (approximately one to three pages) pertaining to Accounting or Finance from a current magazine using SUNY Morrisville library. You should summarize that article 1 or 2 paragraphs covering the salient points of the article. You need to cite the article along with a reference for the article in APA format.

2. Your firm has been hired to help several small businesses with their year-end financial statements. a. Based on the following account balances, prepare the Marbella Design Enterprises balance sheet as of December 31, 2018:

Cash $30,250 Accounts payable 28,500

Fixtures and furnishings 85,000 Notes payable 15,000

Retained earnings 64,450 Accounts receivable 24,050

Inventory 15,600 Equipment 42,750

Accumulated depreciation – fixtures and furnishings 12,500

Common shares (50,000 shares at $1) 50,000 Long-term debt 25,000

Accumulated depreciation on equipment 7,800 Marketable securities 13,000

Income taxes payable 7,500

b. The following are the account balances for the revenues and expenses of the Windsor Gift Shop for the year ending December 31, 2018. Prepare the income statement for the shop.

Rent $ 15,000 Salaries 23,500

Cost of goods sold 98,000 Utilities 8,000

Supplies 3,500 Sales 195,000

Advertising 3,600 Interest 3,000

Taxes 12,120

3. A friend has been offered a sales position at Draper Media, Inc., a small publisher of computer-related publications, but wants to know more about the company. Because of your expertise in financial analysis, you offer to help analyze Draper’s financial health. Draper has provided the following selected financial information:

Account balances on December 31, 2018:

Inventory $ 72,000 Net sales 450,000

Current assets 150,000 Cost of goods sold 290,000

Total liabilities 180,000 Net profit 35,400

Total assets 385,000 Current liabilities 75,000

Other information

Number of common shares outstanding 25,000 Inventory at January 1, 2018 48,000

Calculate the following ratios for 2018: acid-test (quick) ratio, inventory turnover ratio, net profit margin, return on equity, debt-to-equity ratio, and earnings per share. Summarize your assessment of the company’s financial performance, based on these ratios, in a few sentences after calculating the ratios.

4. You are the chief financial officer of Discovery Labs, a privately held biotechnology company that needs to raise $3 million to fund the development of a new drug. Prepare a table for the board of directors that discusses the types of long-term financing available to the firm, their pros and cons, and the key factors to consider in choosing a financing strategy.