The submission is to be one Excel file including text submission on current ratio and a memo. You can type your text submission in Word and copy it into your Excel spreadsheet or type the text submission directly into a text box in Excel. All parts should be included on one sheet . If any calculations are required, they must be shown. I will be able to review the Excel formulas in your worksheet. Utilize Excel formulas to the fullest extent possible. Formatting counts. Use the examples provided in Chapters 1 through 4 for correct formats. The case study answers must be clearly marked and easy to follow. Please title your excel file with your last name & "Case Study 1" . MBA 5850 – Spring 2017 Block 2 Case Study 1 You have been hired by a company that offers design services and sells household goods, My Best Friend’s House. The company has been in business for several years but does not have a good accounting system in place. The owner of the company, Mr. Erie, has provided you with the following account balances as of January 31, 2017. Income and expense amounts are for the month of January 2017. Cash 8,350 Accounts payable 900 Accounts receivable 3,500 Accumulation depreciation 2,700 Additional paid-in capital 6,000 Common stock 1,200 Depreciation expense 900 Income tax expense 700 Income tax payable 250 Insurance expense 1,800 Interest expense 600 Interest payable 700 Inventory 12,000 Land 17,000 Note payable - current portion 3,000 Note payable - long-term 8,000 Office equipment 4,500 Rent expense 6,000 Retained earnings 7,875 Salary expense 12,000 Salaries payable 800 Service revenue 35,000 Travel expense 1,275 Unearned revenue 2,200 The president has told you that although the accounts are shown with a positive balance, they have the normal debit or credit balance that accounts in their account type have (e.g. – assets have a debit balance, liabilities have a credit balance). There are six shareholders and Mr. Erie reports financial information to them on a monthly basis. Required: (1) Prepare a trial balance, income statement and balance sheet using the account balances provided to you. Set up your financial statements so that going forward, the president can enter the account balances in the trial balance and the amounts flow to the correct financial statements. (2) Calculate the current ratio for My Best Friend’s House. What does this tell you about the company? (3) After you have completed your financial statements, Mr. Erie tells you that he believes a couple of mistakes have been made but he is not certain and doesn’t want to change any amounts on the trial balance because “eventually it will all wash out . ” $500 of the $1,275 travel expenses are for a sales trip that he has planned for March 2017. A utility bill in the amount of $650 was received on Febru.