A year out of college, you have $5,000 to invest. A friend has started Sweepstakes Unlimited, Inc., and she asks you to invest in her company. You obtain the company's financial statements, which are summarized at the end of the first year as follows:

Visits with your friend turn up the following facts:
a. Revenues and receivables of $20,000 were overlooked and omitted.
b. Software costs of $25,000 were recorded as assets. These costs should have been expenses. Sweepstakes Unlimited paid cash for these expenses and recorded the cash payment correctly.
c. The company owes an additional $5,000 for accounts payable.
Required
1. Prepare corrected financial statements.
2. Use your corrected statements to evaluate Sweepstakes Unlimited's results of operations and financial position. (Challenge)
3. Will you invest in Sweepstakes Unlimited? Give your reason. (Challenge)

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Sweepstakes Unlimited, Inc. Year Ended Dec. 31, 20X4 Re.x $0,000 Sweepstakes Unlimited, Inc. Balance Sheet Dec. 31, 20X4 3,000 Liabilities 50,000 Equity Income Statement Revenues. Expenses Cas.3 Other assets .$30,000 . 23,000 40,000 $10,000 Total liabilities Total assets.. $53,000 dequity$53,000