Flying Carpets	Balance Sheet
		As of 12/31/21
Current Assets
Cash		50,000
Inventory		300,000
Total Current Assets		350,000
Long Term Assets
Flying Carpet Manufacturing Equip	250,000
less Accumulated Depreciation	0	250,000
Patent-Flying Carpets	200,000
less Accumulated Amortization	0	200,000
Flying Carpets for Rent (10 units)	100,000
less Accumulated Depreciation	0	100,000
Building	100,000
less Accumulated Depreciation	0	100,000
Total Long Term Assets		650,000
Total Assets		1,000,000
Liabilities
Current Liabilities
Short Term Debt (@3.5%)		100,000
Total Current Liabilities		100,000
Tier 1 Debt (@6%)		300,000
Tier 2 Debt (@7%)		200,000
Total Liabilities		600,000
Equity
KMac Equity		250,000
Angel Investor		150,000
Total Equity		400,000
Total Liabilities & Equity		1,000,000

Flying Carpets	Income Statement
	For the Period Ending 12/31/22
Revenue
Sales of Carpets	$1,200,000
Cost of Goods Sold	$300,000
Gross Profit on Sales	$900,000
Carpet Rentals	$120,000
Total Revenue	$1,020,000
Operating Expenses	$400,000
EBITDA	$620,000
Depreciation Expense	$40,000
EBITA	$580,000
Amortization Exp	$10,000
EBIT	$570,000
Interest Expense	$35,500
EBT	$534,500
Tax Exp	$112,245
Net Income	$422,255

Flying Carpets	Balance Sheet
	As of 12/31/22
Current Assets
Cash		217,255
Inventory		600,000
Total Current Assets		817,255
Long Term Assets
Flying Carpet Manufacturing Equip	250,000
less Accumulated Depreciation	25,000	225,000
Patent-Flying Carpets	200,000
less Accumulated Amortization	10,000	190,000
Flying Carpets for Rent (10 units)	100,000
less Accumulated Depreciation	5,000	95,000
Building	100,000
less Accumulated Depreciation	5,000	95,000
Total Long Term Assets		605,000
Total Assets		1,422,255
Liabilities
Current Liabilities
Short Term Debt (@3.5%)		100,000
Total Current Liabilities		100,000
Tier 1 Debt (@6%)		300,000
Tier 2 Debt (@7%)		100,000
Total Liabilities		500,000
Equity
KMac Equity		250,000
Angel Investor		250,000
Retained Earnings		$422,255
Total Equity		922,255
Total Liabilities & Equity		1,422,255

Part 2

• All Inventory will be sold
• Calculate sales, cost of goods sold and gross profit

Please show all work and explanation