ABC Clothing had opened on January 1, 2022. The following activities have occurred since the opening day: - on January 1st, the company received $40,000 of equity from investors - on January 1st, the company took out a loan for $30,000 at 10% annual interest rate - on January 17 th, 2022 , the company had purchased 7000 baseball caps from the manufacturer at $5 each. - as of March 31,2022 , a total of 4000 of the baseball hats were sold, the only product offered by the company, for total of $36,000. Additional expenses: - Rent $3,000 /month was prepaid for all of 2022 - Salaries: $2,000 a month a) What is the companies net profit for the 1st quarter of 2022? (5 marks) b) create a simple balance sheet statement for the company as March 31, 2022. (7 marks)