Cash 1000 Account Receivable 2000 Supplies 5000 Long term assets 25000 Short term bank loan 5000 Trade creditors 2000 long term bank loan 10000 Accured expenses 3000

First year sales 150000 Operating expenses 120000 Bank interest 2000 Depreciation 5000

After that , New asset cost 25000 expenses 5000 bank loan approved 5000, but company provide 5000 cash which used as a working capital. 2nd year sales 250000 operating expenses 220000 depreciation 10000 bank interest 5000

1) Solve balance sheet and incomes of first year

2) Solve also 2nd year income statement.