Barry Bowtie incorporated his business under the name BowTie Fishing Expeditions Corp. on March 1, 2023. It was authorized to issue 30,000 $2 cumulative preferred shares and an unlimited number of common shares. During March, the following equity transactions occurred:

1. 50,000 common shares were issued for cash of $3 per share.

2. 10,000 preferred shares were issued for $5,000 cash plus equipment with a fair market value of $37,000.

3. The corporation reported profit for the month of $190,000.

4. Total cash dividends of $45,000 were declared payable on April 15 to shareholders of record on March 31.

Required

Using the information provided in (a) through (d) plus the following March 31, 2023, selected account balances,* prepare the statement of changes in equity for the month ended March 31, 2023, along with the March 31, 2023, balance sheet:

*This list of accounts is incomplete; you will have to add several accounts based on the information provided in (a) through (d). **The note payable is due in principalinstallments of $30,000 beginning March 1, 2024.

Analysis Component:Use your financial statements prepared above to answer each of the following questions (round percentages to the nearest whole percent):1. What percentage of the total assets is equity financed?2. What percentage of the total assets is financed by debt?3. Page 939 Assume that 30% of BowTie Fishing (the previous proprietorship) was financed by debt at March 31, 2022. Has the risk associated with debt financing increased or decreased from 2022 to 2023? Explain.4. What percentage of the total assets is owned by the common shareholders?5. What percentage of the assets is financed by the preferred shareholders?

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Accounts Payable........... Accounts Receivable... Accumulated Amortization, Patent.. Accumulated Depreciation, Building... Accumulated Depreciation, Equipment.. Accumulated Depreciation, Furniture....... Allowance for Doubtful Accounts........ Building......... Cash.... Customer Deposits....... Equipment......... Estimated Warranty Liabilities.... Furniture.... Land......... Notes Payable**.. Patent... Prepaid Ren.............................. ............................... $ 17,000 36,000 2,000 12,000 2,000 5,000 1,200 148,600 15,000 28,000 140,000 3,400 75,000 105,000 90,000 14,000 9,000