1. Given the following accounts, put together an income statement and balance sheet?

Accounts Receivable $ 50

Accounts Payable $ 50

Inventories $100

Cash $ 50

Sales $500

Retained Earnings $ 50

Cost of Goods Sold $350

Selling General & Admin $ 50

Short term loans payable $ 50

Long term debt $150

Common Stock $ 50

Interest Expense $ 30

Additional Paid in Capital $200

Property Plant & Equipment $350

Tax Expense $ 25

2. When you look at a Companys Bond and you see that they have an interest rate of 8% for 10 years, what determines that rate? (what are the different components that add up to 8% instead of 7% or 9%).

3. Why do different forms of business organizations exist?