On February 1st 2021 you set up a corporation to provide car detailing services in your neighbourhood. The following activities took place during February and March 2021: Set up the corporation with a capital of 500,000 shares at $1 each. Opened a bank account and got pre-approved for a line of credit. During February deposited your cash contribution as owner for $42,000. The corporation also drew $70,000 from the line of credit. On February 1st transferred ownership of your car detailing equipment to the corporation you own. The equipment will be used for 50 months, has no residual value and can be purchased in Kijiji for $14,000 (Kijiji is an online market for used machine and equipment among many other things such as past exams in accounting courses). At the start of operations you signed an insurance contract and paid $2,520 for the premiums of the first quarter in full. The insurance premium for third party liability is $6,720 per year and the premium to cover the replacement cost of tools and supplies housed in rented premisses is $3,360 per year. To store tools and supplies you rented a storage unit for one year and paid $16,800 in advance. On February 1st you purchased tools for $50,400 and paid 50% in cash, the balance is due on March 15th. The tools have a useful life of 60 months with no resale value at the end of their useful life. In early February you hired an advertising agency to design and print 800 promotional posters that were collected and paid in full on February 5th. With a total cost $2,240 you are very careful on how they are distributed and who receives and exhibit them, therefore in February a total of 150 posters were distributed and 250 in March. Of the remaining posters, your plan is to distribute another 300 in April. To further enhance the visibility of your business in mid February you paid $2,520 to an online marketing company 90 thousand clicks (16,000 were used in February and 28,000 in March). . During February you purchased cleaning supplies for $1,680. Half was paid in cash, and the remaining half is paid on March 15th and on mid February 28th your friend flushed and oiled your equipment paying $560 in advance, $1,400 on March 17th, and $1,120 on April 19th. Cleaning supplies were all poured into the equipment, consequently they are considered consumed during February. The work done by your friend is catalogued as preventive maintenance by the equipment manufacturer and must be performed after a set number of hours of use. . During the first half of March you performed many car detailing services and collected $5,600 while $8,400 were due and expected to be collected at some time during the month of March. . During February you did services with the following breakout of collections: owed on account and promised to be collected within March $2,240, owed on account and promised to be collected on Monday February 28th $2,240, and owed on account and promised to be collected sometime during April $2,800. On March 7th, collect total of $4,480 from services provided in the second half of February (one of the customers failed to pay on Monday February 28th as promised). During March collected $8,400 from the services provided in the first half of February and were due on account. After March 20th you provided several car detailing services on your premisses and collected $1,680. A few high-end services were provided at the location of the customer with a total bill of $11,200 that was paid 50% in advance and the rest will be paid in 30 days. On February 28th, received an advance of $5,040 for servicing a set of Italian imported cars during March, and received a deposit of $8,400 for servicing cars that regularly participate at the Cobble Beach Concours d'Elegance for their first appearances in Victoria Day (car detailing to be provided in early May). March services were provided as scheduled. On February 28th, received the bill from the lawyer that helped you to set up the company for $4,200 payable by March 15th. You have paid the bill on time. Bank changes monthly service fee of $280, and in addition, bank charges 6% per year for interest on the portion used of the line of credit, both fees are automatically deducted from chequing account at the end of each month. Results have been so good in the month of March, that you decided to declared dividends to yourself of $100 per 500 shares on March 31st, all dividends declared in the current month will be paid in the next month. $2,800 of dividends were declared in February and were paid on March 4th. Required: 1. Prepare the Income Statement (accrual accounting) for the Month of March 2021. 2. Prepare the Balance Sheet (accrual accounting) as of March 31st 2021. 3. Prepare the statement of proof of cash for the month of March 2021 (only March, do not consider cash inflows or outflows that ocurred during January or February). 4. Prepare the cash flow statement, operations section only using the indirect method. 5. Assess March's financial performance of your company and issue an opinion of its viability (long term survival).