Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $30,000 and has cash on hand of $20,000 contributed by Lannis owners. Lanni takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over 3 years.

a-1.	Prepare the balance sheet just after it gets the bank loan. (Omit the "$" sign in your response.)

Assets			Liabilities & Shareholders' Equity
Cash	$		Bank loan	$
Computers			Shareholders' equity
Total	$		Total	$

a-2.	What is the ratio of real assets to total assets? (Round your answer to 2 decimal places.)

Ratio of real assets to total assets

b-1.	Prepare the balance sheet after Lanni spends the $70,000 to develop its software product. (Omit the "$" sign in your response.)

Assets			Liabilities & Shareholders' Equity
Software product	$		Bank loan	$
Computers			Shareholders' equity
Total	$		Total	$

b-2.	What is the ratio of real assets to total assets?

Ratio of real assets to total assets

c-1.	Lanni sells the software product to Microsoft, which will market it to the public under the Microsoft name. Lanni accepts payment in the form of 1,500 shares for $80 per share. Prepare the balance sheet after Lanni accepts the payment of shares from Microsoft. (Omit the "$" sign in your response.)

Assets			Liabilities & Shareholders' Equity
Microsoft shares	$		Bank loan	$
Computers			Shareholders' equity
Total	$		Total	$

c-2.	What is the ratio of real assets to total assets? (Round your answer to 2 decimal places.)

Ratio of real assets to total assets