Creassos Ltd. was formed in July 2012 with \($20,000\) of capital. \($7,500\) of this was used to purchase equipment. The owner budgeted for the following:

Wages and other expenses are paid in cash. In addition to the above, depreciation is \($2,\) 400-per year.
No inventory is held by the company.

a. Calculate the profit for each of the three months from July through September and the total profit for the three months.

b. Calculate the cash balance at the end of each month.

c. Prepare a statement of financial position.at the end of September.

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Receipts of Accounts Sales Receivable Purchases Payments on Accounts Payable Other Wages Expenses July $20,000 $ 8,000 $ 5,000 $3,000 $2,000 Aug. 30,000 $20,000 15,000 10,000 4,000 2,000 Sept. 40,000 30,000 20,000 20,000 5,000 3,000