On January 1, 2014, Fireworks Fantasia entered its third year of operations. On December 31, 2014, Wes Gandalf, the owner, finalized the company's records that showed the following items.

Required
Prepare an income statement and statement of changes in equity for the year ended December 31, 2014, and a December 31, 2014, balance sheet, similar to Exhibits 1.8, 1.9, and 1.10.
Analysis Component: Analyze the balance sheet and calculate what percentage of the assets at December 31, 2014, were financed by (a) debt and (b) equity.