3. Below is the balance sheet for a store at the end of the first year, and transactions for the first quarter of the following year. Balance Sheet (December 31, 20x0) Cash $15,000 Loans Payable $9,000 Rent Deposit $5,000 Total Liabilities $9,000 Inventory $21,000 Stock $25,000 Retained Earnings $7,000 Total Equity $32,000 Total Assets $41,000 Total Liab, and Equity $41,000 Transactions (January 1 - March 31, 20x1) Description Amount Comment Products Purchased $50,000 2600 tops and 1600 pants Receipts from sales $100,000 4000 units at average cost of $12 each Advertising/Promotion $12,000 Increased promotion Payroll Expense $25,000 Includes taxes and benefits Other Expense $10,000 Includes $1,000 in shrinkage Loan Payment $1,000 Principal Reduction a. Show the income statement for the quarter. You will need to calculate tax at 30%. b. What does cash flow for the quarter look like? Be sure to include the tax paid. c. Update the balance sheet to reflect the results from the quarter