Question

. In a one-page memo, provide an explanation to the managementteam on July's financial performance. Please provide a one-pageexplanation. Thanks in advance

Ajayi Art Inc.
	Trial Balance
	Account Title& Explaination	Amt (Dr)	Amt (Cr)
	Cash	$ 2,48,525
	AccountsReceivable	$ 2,400
	Prepaid Rent	$ 2,000
	OfficeEquipment	$ 22,250
	Art Supplies	$ 8,790
	AccumulatedDepreciation		$ 371
	AccountsPayable		$ 6,800
	SalaryPayable		$ 3,800
	InterestPayable		$185
	ServiceRevenue		$ 4,300
	UneanedRevenue		$ 3,500
	Common Stock		$ 2,50,000
	Note Payable		$ 22,250
	SalaryExpenses	$ 3,800
	Misc OfficeExpenses	$ 375
	DepreciationExpenses	$ 371
	Rent	$ 1,000
	InterestExpenses	$ 185
	SuppliesExpenses	$ 1,510
	Total	$ 2,91,206	$ 2,91,206
	Ajayi Art Inc.
	Income Statement		-
	Service Revenue		$ 4,300.00
	Expenses
	Salary Expenses	$ 3,800.00
	Supplies Expenses	$ 1,510.00
	Rent Expenses	$ 1,000.00
	Interest Expenses	$ 185.42
	Depreciation	$ 370.83
	Misc.Office Expenses	$ 375.00
	Total Expenses=(B)		$ 7,241.25
	Net Income(A)-(B)		$ -2,941.25
	Ajayi Art Inc.
	Statement of Owner'sEquity
	July 31st
	Beginning RetainedEarnings	0
	Add: Net Income	$ (2,941.25)
	Ending Retained Earnings	$ (2,941.25)
	Ajayi Art Inc.
	Balance Sheet
	July 31st
	Assets
	Cash	$ 2,48,525.00
	Accounts Receivable	$ 2,400.00
	Art Supplies	$ 8,790.00
	Prepaid Rent	$ 2,000.00
	Office Equipment	$ 22,250.00
	AccumulatedDepreciation-Office Equipment	$ -370.83
	Total Assets		$ 2,83,594.17
	Liabilities &Stockholder's equity
	Liabilities
	Accounts Payable	$ 6,800.00
	Salary Payable	$ 3,800.00
	Interest Payable	$ 185.42
	Unearned Service Revenue	$ 3,500.00
	Note Payable	$ 22,250.00
	Total Liabilities		$ 36,535.42
	Stockholder's Equity
	Common Stock	$ 2,50,000.00
	Retained Earnings	$ (2,941.25)
	Total Equity		$ 2,47,058.75
	Total Liabilities &Stockholder's Equity		$ 2,83,594.17