FNEC 2600 Budget Case: Fall 2017 mule attending West State University, Sydney Brady recognized there was business opportunity to silkscreen shirts for student organization and started a business called \"Silk-Screen Design\" at the beginning of last year (2016). Sydney obtained a 12-month $40,000 loan in January of 2016 to help get her business started. The interest rate on the note was 6%, and the terms require payment of both the principal and interest to be remitted on January 5th of 2017. The bank that loaned Sydney the $40,000 required her to put together detailed budgets as part of the loan application process. Sydney found this to be very helpful in getting her business started and has decided to go through the budgeting process again for 2017. Using the December 31, 2016 balance sheet along with the other information that follows, you are going to complete the 2017 budgetng process for Sydney. Silk-Screen Design Balance Sheet December 31, 2016 Assets $187232 Cash 6 Accounts Receivable 41,580 T-shirt (Materials) Inventory 24 000 $252,911 Total Assets 6 Liabilities 8; Owner's Equity Accounts Payable $52,800 Wages Payable 900 Notes Payable 40,000 Interest Payable 2,400 Income Taxes Payable 36,186 $18228 Total Liabilities 6 Capital or Retained Earnings 120,620 Total Liabilities & Owner's $252.90 Equity 6 Other Information: Sydney rents all of her equipment and furnishings but has decided to purchase the equipment and furnishings from the lessor at the end of lease term on April 1, 2017. The bank has agreed to loan Sydney an amount equal to the total cost of the furniture and equipment ($29,720). The 12- month, 5% loan will be dated April 1, 2017. Interest and principal will become due on March 31, 2018. A detail listing of the items that Sydney currently rents and will purchase follows. Sydney will depreciate all items on a straight-line basis with no salvage value