A company was started last year when the shareholders invested $70 cash into the company. At that time, the organization also borrowed $30 cash from a local bank. The organization used $80 cash to purchase inventory for $80. This year the company sold all of the inventory for $55 cash. (That is not a typographical error; the amount received for all of the inventory was only $55 cash.)

Assuming that there is no interest on the loan, what is true with respect to this company's balance sheet after the sale of the inventory?

I don't know where how to break this down very well.

Thank you for your time.