George Littlechild started a new kitchen and bath design business called Littlechild Enterprises. The following activities occurred during its first month of operations, March 2014: a. Littlechild invested $185,000 cash and office equipment valued at $25,000 in the business. b. Purchased a small building for $650,000 to be used as an office. Paid $125,000 in cash and signed a note payable promising to pay the balance over several years. c. Purchased $3,500 of office supplies for cash. Purchased $77,000 of office equipment on credit. George Littlechild made reservations at a hotel hosting a kitchen and bath design conference in August 2014. He will send a $1,500 deposit on July 1, 2014. Completed a project on credit and billed the client $5,700 for the work. g. Paid a local newspaper $4,000 for an announcement that the office had opened. h. Completed a project for a client and collected $4,500 cash. i. Made a $4,500 payment on the equipment purchased in (d). Received $2,750 from the client described in (f). k. Paid $8,000 cash for the office secretary's wages. I. Littlechild withdrew $4,100 cash from the company bank account to pay personal living expenses. 3-c. Prepare a balance sheet. Littlechild Enterprises Balance Sheet March 31, 2014 Assets Liabilities Cash Accounts payable Notes payable Accounts receivable Total liabilities Office supplies Office equipment Building Total assets Equity George Littlechild, capital Total liabilities and equity Analysis Component: Littlechild Enterprises' assets are financed 75% by debt. What does this mean? As part of your answer, include an explanation of how the 75% was calculated. (Round your answer to the nearest whole number.) Assets result from a combination of debt and equity financing (A = L + E). Littlechild Enterprises' total assets of resulted from incurring in liabilities. x 100 =