Cavendish Ltd. has just begun operating under ideal conditions of uncertainty. Its cash flows will depend on the state of the economy. On January 1,2022, the company acquired plant and equipment that will last two years, with zero salvage value. Cavendish financed the plant and equipment purchase by issuing common shares. In 2022 , net cash flows will be $900 if the state of the economy is good and $650 if it is poor. In 2023 , cash flows will rise to $1,300 if the economy is good and remain at $650 if it is bad. Cash flows are received at year-end. In each year, the probability that the economy is good is 0.7 . The interest rate in the economy is 4 percent in both years. Cavendish pays a dividend of $60 at the end of 2022 and 2023. Required a. How much did Cavendish Ltd. pay for its plant and equipment on January 1, 2022? b. In 2022, the economy is good. Prepare a current value-based balance sheet at the end of 2022 and an income statement for 2022