I need step-by-step solution

the requirement is preparing balance sheet and income statement from these information

b) - + E Flower Ltd operates under ideal conditions of uncertainty. On January 2017 Flower Ltd acquired an asset to be used in its operations. Its cash flows depend on the demand conditions. The machine will be used for three years, at the end of which its salvage value will be 400. Flower Ltd financed the asset purchase by issuing ordinary shares. In 2017, net cash flows will be 1,000 if the demand conditions are favourable and 500 if they are unfavourable. In 2018, cash flows will be 1,500 if the economic conditions are favourable and 700 if they are unfavourable. In 2019, cash flows will be 1,200 if the economic conditions are favourable and 800 if they are unfavourable. Cash flows are received at year- end. In the first year, the probability that the economic conditions are favourable is 0.4 and 0.6 that they are unfavourable. In the second and third years, the probability that the economic conditions are favourable is 0.3 and 0.7 that they are unfavourable. The interest rate in the economy is 6% in all three years. Flower Ltd pays a dividend of 300 at the end of 2017. In 2017, the demand conditions are favourable. Demand conditions for 2018 and 2019 are not yet known. Prepare a statement of financial position (balance sheet) as at the end of 2017 and a statement of income for 2017. (30 marks) b) - + E Flower Ltd operates under ideal conditions of uncertainty. On January 2017 Flower Ltd acquired an asset to be used in its operations. Its cash flows depend on the demand conditions. The machine will be used for three years, at the end of which its salvage value will be 400. Flower Ltd financed the asset purchase by issuing ordinary shares. In 2017, net cash flows will be 1,000 if the demand conditions are favourable and 500 if they are unfavourable. In 2018, cash flows will be 1,500 if the economic conditions are favourable and 700 if they are unfavourable. In 2019, cash flows will be 1,200 if the economic conditions are favourable and 800 if they are unfavourable. Cash flows are received at year- end. In the first year, the probability that the economic conditions are favourable is 0.4 and 0.6 that they are unfavourable. In the second and third years, the probability that the economic conditions are favourable is 0.3 and 0.7 that they are unfavourable. The interest rate in the economy is 6% in all three years. Flower Ltd pays a dividend of 300 at the end of 2017. In 2017, the demand conditions are favourable. Demand conditions for 2018 and 2019 are not yet known. Prepare a statement of financial position (balance sheet) as at the end of 2017 and a statement of income for 2017. (30 marks)