Jennifer decides that she will go into the tourist industry on Lake Geneva, and buy a concession to hire out canoes on the lake. She borrows CHF40,000 (CHF is swiss currency) from her parents and puts CHF20,000 in herself. The arrangment with the Canton is that she pays CHF50,000 at the start for the concession, which runs five years, but must also pay an annual rental of CHF10,000 at the end of the season in october. She negotiates a deal with a canoe supplier who sells her 20 canoes for CHF 30,000 but agrees that she should pay CHF10,000 on delivery and the rest a year later. During the season she receives CHF 90,000 (cash) in canoe rentals.

Task: Making and specifying whatever assumptions you wish, you are asked to draw up a simple statement of profit or loss for the first year and statement of finacial postiton at the end of the year.