Can you please confirm if the answers are correct. Thank you

1. Carol has already purchased Inventory of $10,000
2. Carol has already purchased $10,000 in equipment.
3. Carol will also keep a $10,000 as a Beginning Cash Balance.
4. Carol will have Accounts Payables of $10,000 (supplier credit for the inventory).
5. Carols friend who owns a Fitness Equipment store has agreed to give Benny a 1-year loan for the equipment needed of $10,000 (10% annual interest rate)

(this will be paid back with the interest at the end of year 1).

6. Carol will put in $10,000 of her own money as owners equity

II. An Income Statement for Year 1:

G. Carol forecasts that she will have 200 fitness class members paying a fitness membership of $500 annually).

8. Carol will pay herself a fixed salary of $50,000 a year and will hire a student part-time assistant for a few hours a week. The assistant will be paid $10,000 a year. Carol will pay a fixed payroll tax of 10% on total salaries, which can be deducted before taxes.
1. Carol will pay rent and utilities amounting to $20,000 a year.
10. Annual Depreciation expense on the equipment will use simple straight-line depreciation with no salvage value for a 10-year life
11. Carol will pay an annual interest expense of $1,000 for her loan for the first year of her operations paid at the end of the year.
12. Income taxes on Earnings Before Taxes will be taxed at a 25% rate.

	Balance Sheet
	Assets	Year 1
A	Cash	$10,000
B	Inventory	$10,000
C	Equipment	$10,000
	Total assets	$30,000
	Liability & Equity
D	Account Payable	$10,000
E	Note Payable	$10,000
	Total Liability	$20,000
	Equity
F	Owner' Investement	$10,000
	Total Liability & Equity	$30,000
	Income Statement
		Income Statement
G	Sales		100,000
	Expenses
H.1	Salary	60000
H.2	Payroll taxes	6000
I	Rent & Utility	20000
J	Depreciation Expense	1000
	Total Operating Expense		(87,000)
K	Interest Expense	(1000)
	Total non operating		(1000)
	Income before income taxes		12,000
L	Income tax expense 25%		3000
	Net Income		9,000