Marilyn Miller opened a floral shop using \($5,000\) of her own cash savings and with \($15,000\) in cash borrowed from her parents. She signed a lease on a small store for one year, agreeing to pay \($350\) per month in rent. During the first year of operations, Marilyn purchased fresh flowers from a local nursery for \($2,500\), paid \($1,200\) for utilities, and generated floral sales totaling \($12,000\). (Assume all transactions were cash transactions.) Marilyn was hoping to be able to repay her parents one-half of the borrowed money at the end of the first year of operations.
Prepare an income statement, balance sheet, and statement of cash flow for the floral shop. Can Marilyn achieve her goal of repaying one-half of the \($15,000\) loan at the end of the first year of operations?