1. It is January 1st,2014 and Oscar D'Souza has decided to start a new business. He wants to forecast the first year's Income Statement and Balance sheet. He believes the assumptions below are reasonable - and wants you to assist him by creating the forecasted statements. You agree. Please construct an Income Statement and Balance Sheet from the information provided below. (25 points) a. First year sales will total $100,000 b. Gross margins will be 50% c. Operating margins will be 20% d. Accounts Receivables will be about 15% of sales e. Inventory will be 12% of sales f. Accounts Payable will be 5% of sales g. Accrued expenses payable will be 7% of sales h. The Bank of Connecticut will provide a loan of $30,000. The annual interest will be 8%, compounded annually. Interest only payments are needed - until the loan is due in 5 years, where a balloon payment for the full balance must be paid. i. The combined federal and provincial tax rates will be 30% j. Capital equipment purchases will be made at the start of the year. These will total $35,000. These will depreciate at 10% per year k. D'Souza wants ending cash to be $24,500; he feels he needs this on hand at year-end I. D'Souza will provide any other capital needed in the form of equity financing