Mathematics & Statistics II – Financial Reports AssignmentDue 25 SeptemberHarry Manback is the owner and CEO of an independent music label, Forty Six & TwoRecords, which he operates thanks to his home recording studio. The company had abetter 2018 than the previous year, thanks to the hit single their newly-signed bandSchism had in Germany, “Die Eier von Maynard.” Some expenses from touring havealso fallen, allowing the company to grow revenue from performances.YOUR TASK. Using Microsoft Excel, create two spreadsheets for the following data.Sheet 1: Annual Balance Sheet dated 31 December 2019.Sheet 2: Income Statement for the period of 1 January to 31 December 2019.Submit the spreadsheets as a single MS Excel file. Submit your answer to the BonusQuestion as a Word file.Assets: $304,500 cash, $48,000 product inventory, $379,450 of accounts receivable,$54,000 of pre-paid expenses like performance venue rentals and hotels, $86,000 inequipment (the value of everything in the record studio plus office equipment).Liabilities: $67,950 of accounts payable, $248,400 of salaries payable (which includestaxes and other income deductions already), $288,000 in rent for company offices.Equity: $162,000 in owner’s equity (which includes what Manback spent building therecord studio), $106,600 in retained earnings.Revenues: $420,650 income from ticket sales percentages, $128,370 sales royalties,$22,030 streaming revenue.Cost of Product Sold: $39,000 in product inventory held from 2018, $172,400 ofpurchases, $24,580 of product returns, $3500 in sale discounts, $48,000 of inventory notsold yet.Operating Expenses: $248,400 in salaries, $56,000 insurance policies, $68,500 utilitiescharges, $3750 in plumbing repairs, $4580 in studio maintenance, $288,000 in rent forcompany offices, $13,000 of depreciation on studio and office equipment.CRITICAL QUESTION. In a paragraph of 5-7 sentences, assess the corporate health ofForty Six & Two Records. Do you consider it a healthy company or not? Why or whynot?