OverviewIn Project Two, you will analyze and evaluate a business’s financial health and recommend the best financing options for the business to choose in order to improve its current financial health. Use the Project Two Business Options List PDF to choose the business that you will examine in Project Two. Then, use Mergent Online to locate the most recent quarterly financial statements for the business: the balance sheet, the income statement, and the cash flow statement.In order to succeed in your Project Two assignment, you will need to understand the role of financial statements and how they help businesses determine their current financial health. You will also need to describe why cash flow management is important to a business and that business’s financial health.PromptWrite a brief journal introducing the business you chose for your Project Two assignment.Specifically, you must address the following rubric criteria:Business Selection: Provide a description of the business you chose, including the business name and what it offers consumers.Financial Statements: Using Mergent Online, provide a copy of the balance sheet, the income statement, and the cash flow statement for your chosen business from the most recent fiscal quarter.Financial Statement Role: Explain why financial statements are important to a business and how they help businesses determine their current financial health.Cash Flow Management: Describe why cash flow management is important to a business and its financial health. Use a recent financial news story as an example to support your claims.Guidelines for SubmissionYour journal submission should be a 3- to 4-paragraph Word document with 12-point Times New Roman font, double spacing, and one-inch margins. Any sources should be cited according to APA style. You will also need to submit the Excel files for your chosen business’s balance sheet, income statement, and cash flow statement from Mergent Online.Module Two Journal RubricCriteriaProficient (100%)Needs Improvement (70%)Not Complete (0%)ValueBusiness SelectionProvides a description of the business chosen, including the business name and what the business offers consumersShows progress toward proficiency, but with errors or omissions; areas for improvement may include providing a more complete description of the business chosen, such as the business name or what it offers consumersDoes not attempt criterion15Financial StatementsProvides a copy of the balance sheet, the income statement, and the cash flow statement for the chosen business from the most recent fiscal quarterShows progress toward proficiency, but with errors or omissions; areas for improvement may include providing a copy of all three required financial statements for the chosen business from the most recent fiscal quarterDoes not attempt criterion15Financial Statement RoleExplains why financial statements are important to a business and how they help businesses determine their current financial healthShows progress toward proficiency, but with errors or omissions; areas for improvement may include explaining in further detail why financial statements are important to a business and how they help businesses determine their current financial healthDoes not attempt criterion25Cash Flow ManagementDescribes why cash flow management is important to a business and its financial health, using a recent financial news story to support the claimsShows progress toward proficiency, but with errors or omissions; areas for improvement may include a more complete description of why cash flow management is important to a business and its financial health or using a recent financial news story to better support the claimsDoes not attempt criterion25Articulation of ResponseClearly conveys meaning with correct grammar, sentence structure, and spelling, demonstrating an understanding of audience and purposeShows progress toward proficiency, but with errors in grammar, sentence structure, and spelling, negatively impacting readabilitySubmission has critical errors in grammar, sentence structure, and spelling, preventing understanding of ideas10Citations and AttributionsUses citations for ideas requiring attribution, with few to no minor errorsUses citations for ideas requiring attribution, with major errorsDoes not use citations for ideas requiring attribution10Total: 100%

Recording transactions (Including adjusting and closing entries), preparing a set of financial statements, and performing ratio analysisBrothers Mike and Tim Hargen began operations of their tool and die shop (H&H Tool, Inc.) on January 1, 2021. The annual reporting period ends December 31. The trial balance on January 1, 2022, follows: Account Titles Debit Credit Cash $4,000 Accounts receivable 7,000 Supplies 16,000 Land Equipment 78,000 Accumulated depreciation (on equipment) $8,000 Other assets (not detailed to simplify) 5,000 Accounts payable Wages payable Interest payable Income taxes payable Long-term notes payable Contributed capital (85,000 shares) 85,000 Retained earnings 17,000 Service revenue Depreciated expense Supplies expense Wages expense Interest expense Income tax expense Remaining expenses (not detailed to simplify) Totals $110,000 $110,000 Transactions during 2022 follow:Borrowed $12,000 cash on a 5-year, 10 percent note payable, dated March 1, 2022 Purchased land for a future building site; paid cash, $12,000Earned $208,000 in revenues for 2022, including $52,000 on credit and the rest in cashSold 4,000 additional shares of capital stock for cash at $1 market value per share on January 1, 2022 Incurred $111,000 in remaining expenses for 2022, including $20,000 on credit and the rest paid in cash Collected accounts receivable, $34,000 Purchased other assets, $13,000 cash Paid accounts payable, $19,000 Purchased supplies on account for future use, $23,000Signed a three-year $33,000 service contract to start February 1, 2023Declared and paid cash dividends, $22,000 Supplies counted on December 31, 2022, $18,000Depreciation for the year on the equipment, $8,000Interest accrued on notes payable (to be computed)Wages earned by employees since the December 24 payroll but not yet paid, $16,000Income tax expense, $10,000, payable in 2022Detailed requirements are in the attached word file.