a An engineer starts a business by paying $100,000 in equity capital. During the course of the first year, the business made sales of $89,000, incurred vari- able costs of $35,000 and fixed costs of $10,000. The business also loaned $75,000 from a bank, incurring interest of $2,000 during the period. The funds were used to purchase a machine for $120,000 and to fund working capital of $30,000, which consisted of $10,000 in accounts receivable, and $20,000 in inventory. The machine is depreciated on a straight-line basis over ten years, and the tax rate is 40%. Establish the income statement, cash flow statement and balance sheet for the business at the end of the first year