EXHIBIT 1- Prepared by S.A. Hinchliffe CASE FACTS AND CIRCUMSTANCES Arborista, Inc. plants trees and shrubs for homeowners. The trees are purchased from and delivered by a sister company, Trees-R-Us, Inc.; Arborista specializes in planting. Arborista obtained capital from family members in exchange for common stock, which provides an ownership interest to the family members. On December 1st, a total of $50,000 was raised by issuing 10,000 shares of stock. An additional $20,000 was borrowed from their hometown bank, also on December 1st. The principal must be repaid at the end of two years, along with 6% interest annually, which accrues as time passes. Also on December 1st, Arborista took delivery of, and began using in the business, two previously- owned Ford F-250 pick-ups for which it paid cash of $7,000 each. These trucks are expected to last for 5 more years and the best guess is that each will be worth $1,000 at the end of the 5 year period. Arborista hired employees to do the planting. Arborista decided to charge $75 for planting each tree. The worker planting the tree will receive $20 per tree as her wage. On December 18th, a client came into the office to arrange to have trees planted on his property. The client wanted 30 trees/shrubs planted. Arborista scheduled the work for the next day. The client paid in cash and Arborista paid the employee the same day in cash. Required: Prepare a balance sheet, income statement, and statement of cash flows as of December 31s