The Panama Pajama Company began operations on January 1, 2015, and is now in its third year of operations.
The adjusted trial balance as of December 31, 2018 appears below, along with prior year balance sheet data and some additional transaction data for 2018.
	THE PANAMA PAJAMA COMPANY
	Adjusted Trial Balance
	12/31/18
		2018		2017
	Account Title	Adjusted Trial Balance		Balance Sheet Info
		Debit	Credit	Debit	Credit
	Cash	$ 138,000		$ 35,600
	Accounts Receivable	12,000		11,000
	Inventory	4,400		5,600
	Office Equipment	26,000		20,000
	Machinery & Tools	59,000		21,000
	Accumulated DepreciationPlant Assets		$ 8,600		6,000
	Accounts Payable		12,200		9,800
	Note PayableShort Term		10,000		15,500
	Note PayableLong Term		33,000		-
	Common Stock, $10 par		150,000		50,000
	Retained Earnings		11,900		11,900
	Dividends	1,000
	Sales Revenue		31,700				-
	Cost of Goods Sold	11,600
	Rent Expense	2,000
	Advertising Expense	800
	Depreciation Expense	2,600
		$ 257,400	$ 257,400
	Transaction Data for 2018 (Note, these transactions were included in the trial balance numbers above.)
	Cash paid for purchase of office equipment	$ 6,000
	Cash paid for purchase of tools	5,000
	Acquisition of Machinery with Notes PayableLong-term	33,000
	Cash payment of dividends	1,000
	Cash receipt from issuance of 10,000 shares of common stock	100,000
Requirements: (See sheet tabs at bottom. Use each sheet for the following requirements.)
Use Excel Skills in completing these requirements. You must use formulas and functions, cell references, and professional formatting.
1.	Prepare the Panama Pajama Company multi-step income statement for the year ended December 31, 2018. Include the EPS at the bottom.
	Also include a vertical analysis column at the right and perform a vertical analysis of the income statement. (Use percentage format with 1 decimal place.)
2.	Prepare the Panama Pajama Company balance sheet for December 31, 2018. Include a vertical analysis column at the right
	and perform a vertical analysis of the balance sheet. (Use the percentage format with 1 decimal place.)
3.	Prepare the Panama Pajama Company statement of cash flows for the year ended December 31, 2018. Use the indirect method.
4.	Complete the analysis of the financial statements as directed on the Analysis sheet.
5.	Answer the question regarding the differences between IFRS and GAAP on the IFRS Perspective sheet.