Marla Gutlerrez and Devin Cuncan recently graduated from the same unIversity. After graduation they decided not to seek jobs at established organizations but, rather, to start thelr own small business hoping they could have more flexibility In thelr personal IIves for a few years. Marla's family has operated Mexican restaurants and taco trucks for the past two generations, and Marla noticed there were no taco truck services in the town where their university was located. To reduce the amount they would need for an Inltial Investment, they decided to start a business operating a taco cart rather than a taco truck, from which they would cook and serve traditional Mexican-style street food. They bought a used taco cart for $17,000. This cost, along with the cost for supplies to get started, a business license, and street vendor license brought their Inltial expenditures to $23,000. They withdrew $4,000 from personal savings they had accumulated by workIng part tIme durlng college, and they borrowed $17,000 from Marla's parents. They agreed to pay Interest on the outstanding loan balance each month based on an annual rate of 4 percent. They will repay the principal over the next few years as cash becomes avallable. They were able to rent space in a parking lot near the campus they had attended, belleving that the students would welcome thelr food as an alternative to the typical fast food that was currently avallable. After two months In business, September and October, they had average monthly revenues of $27,000 and out-of-pocket costs of $22,000 for rent, Ingredients, paper supplies, and so on, but not Interest. Devin thinks they should repay some of the money they borrowed, but Marla thinks they should prepare a set of forecasted financlal statements for their first year in business before deciding whether or not to repay any princlpal on the loan. She remembers a bit about budgeting from a survey of accounting course she took and thinks the results from thelr first two months in business can be extended over the next 10 months to prepare the budget they need. They estlmate the cart will last at least five years, after which they expect to sell It for $4,000 and move on to something else in thelr Ilves. Marla agrees to prepare a forecasted (pro forma) Income statement, balance sheet, and statement of cash flows for thelr first year In business, which Includes the two months already passed. Required a. Prepare the annual pro forma financlal statements that you would expect Marla to prepare based on her comments about her expectations for the business. Assume no princlpal will be repald on the loan. Complete this question by entering your answers in the tabs below. Prepare the budgeted income statement