Accounting Problem
A) Using Trap Adventures, Inc.'s income statement, evaluate the operations for the month of December. Complete a common-size income statement using sales as the base number.
a. What is the largest percentage?
b. What is the smallest percentage?
c. What recommendations could be made to increase Trap's net income?
B) Currently, Trap Adventures, Inc. does not own any loans or bank notes (long-term liabilities).
a. What would happen if Trap decides to obtain a bank loan for $25,000 to fund daily operations?
b. How would this transaction impact the financial statements - which accounts would be affected?
c. What is the debt to equity ratio?
d. What does the debt to equity ratio represent?
Format your assignment according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.
Attachment:- Alternate-Excel.rar