ENGITE 566 Finance for Engineering management Homework #1 Due February 14 Problem l Using the example for the hardware store in the book "Understanding Finance Statements" oin page 9, please prepare a balance sheet for the end of week 2, 3, 4, & 5 (four balance sheets). XYZ HARDWARE AND BUILDING SUPPLY DECEMBER 31, YEAR BALANCE SHEET ASSETS LIABILITIES& NET WORTH Cash Accounts receivable Inventory Total Current Assets S2,000Accounts Payable 18,000 65,000 95,000 $ 297,000Tol Current Liabilities 178,000 85,000Notes Payable 210,000 Accruals Land/Buildings 144,000 50,000Total Long Term Debt 144,000 50,000 Mortgage ipment Furniture & Fixtures Total Fixed Assets 25,000 Total Liabilities $ 322,000 $125,000 Net Worth $100,000 Total Assets $ 422,000otal Liabilities & Net Worth S 422,000 The above example represents the first week of business Balance Sheet (Gill J. 1999) Assumptions: 1) Assume that $25,000 of inventory will be sold in week 2, and the gross margin is 25% of sales 2) Sales increase by $5000 each week for the following three weeks. Sales proportion of credit vs. cash will be 60% cash vs 40% credit. For simplicity, assume sales are made on the first day of the week 2) Add a weekly expenses of $3,000 for wages and other expenses. This will be paid from the cash account at the end of each week. Shall be subtracted from the Net Worth beginning 3) The receivable and payable amount for week one will be received and paid at first day of week 4) Accruals will be due for payment every quarter Instructor Dr. Brian Lilly