Farm Branch Rentals has come to you and wants a review of the current financial position of the company as of January 31, 2015. Complete the following:
• Prepare the 4 closing entries and post the transactions to the ledger accounts. Discuss the process of closing entries.
• Explain those accounts that remain open and why.
• Discuss the 3 main financial statements and what information is revealed about the company’s current position and other related financials that are used during financial analysis.
• Include at least 5 common financial ratios that help users of the financials understand the position of the company. Be sure to show your work on these ratios and explain why you are using specific numbers.
• Include disclosures to accompany the January 31, 2015 financial statements.
• Be sure to include a separate note addressing each of the following: ?Maturity dates of major liabilities
Depreciation policy:
Several examples of calculations of each to provide a thorough understanding
• A memo of 350–500 words explaining the financial position of the company.