You will remember from the Week 1 Assignment that Medi-Supply is a small but growing company that sells medical devices to hospitals in the local area. The company wants to expand their distribution regionally and hopefully nationally with their innovative devices. They are looking for investors as well as seeking out potential banks to borrow funds for expansion. These investors require standardized financial statements and are very hesitant to get involved with any companies before ensuring their adherence to ethical business and financial practices, in order to avoid tarnishing their reputation. The owner of Medi-Supply has hired XYZ Corporation to provide consulting services to help them sort through their financial data, build their financial statements to display to potential investors, and help them ensure they are on track with their goals and are avoiding any potential risks. You have been assigned to this project by your manager, Tim Lewis. Tim asks you to compile the results of your review into a series of reports, with detailed financial statements included.In Week 1, you completed a business report on the management goals and financial ethics of Medi-Supply company. This week, you will continue your work by preparing financial statements and a business report related to your findings.To prepare for this Assignment:Review this week’s Learning Resources.Download the Week 2 Assignment Financial Statement Excel Template and the Week 2 Assignment Business Report Template. You will use both documents to complete this Assignment.Refer to the Academic Writing Expectations for 2000/3000-Level Courses as you compose your Assignment.By Day 7Submit your completed Financial Statement Excel Template along with your business report that addresses the following prompts.Part 1: Preparing a Balance SheetUsing the Financial Statement Excel Template, which includes the needed data, prepare a balance sheet for Medi-Supply. Be sure to use proper Excel formulas to show your work in cells where math is involved to derive the answers.Using the Business Report Template, how would you interpret the quality of the balance sheet? In your response, be sure to address whether there is excessive leverage, enough cash to make payroll and/or buy equipment, et cetera. (75–150 words, or 1–2 paragraphs)Based on your interpretation of the balance sheet, would you recommend lending to the company? Explain why or why not, including any potential risks. (75–150 words, or 1–2 paragraphs)Part 2: Building an Income StatementUsing the Financial Statement Excel Template, which includes the needed data, prepare an income statement for Medi-Supply. Be sure to use proper Excel formulas to show your work in cells where math is involved to derive the answers.Using the Business Report Template, address the following using Medi-Supply’s income statement:Interpret the quality of the income statement for this company. Is the income statement improving or deteriorating over time? Explain your answer, including why you reached your conclusion. (75–150 words, or 1–2 paragraphs)Describe whether or not this company is profitable. If the company is unprofitable, explain if it is growing fast enough for sales to outpace expenses. (75 words, or 1 paragraph)Based on their income statement, would you invest in the company? (75 words, or 1 paragraph)Part 3: Calculating the Operating Cash FlowUsing the Financial Statement Excel Template, which includes the needed data, compute the operating cash flow for Medi-Supply. Be sure to use proper Excel formulas to show your work in cells where math is involved to derive the answers.Using the Business Report Template, address the following using Medi-Supply’s operating cash flow: Interpret the quality of the operating cash flow for this company. Is the operating cash flow improving or deteriorating over time? Explain your answer, as well as why you reached your conclusion. (75–150 words, or 1–2 paragraphs)Describe whether or not the company generates positive cash flow from operations. (75 words, or 1 paragraph)Based on the quality of their cash flow, would you invest in the company? (75 words, or 1 paragraph)