On March 1^st, John Kuli established and started operating the Kuli Company Limited and invested US $ 100,000 of his own savings. Between March 1^st and March 15^th, the Company did the following things:

1. It borrowed US $ 200,000 from the bank;
2. It purchased US $ 80,000 of inventory for cash;
3. It sold half of its inventory for US $ 120,000 to a customer who paid US $ 70,000 cash and agreed to pay the rest within 30 days;
4. It purchased an equipment for US $ 70,000, paid US $ 30,000 down and gave a note to the equipment supplier for the remaining US $ 40,000;
5. John Kuli withdrew US $ 1,400 cash from the company;
6. Mr Kuli was offered US $ 20,000 for his equity in the business, but he refused the offer.

1. Prepare a balance sheet as of the close of the business on March 15^th .
2. What is the solvency of the Kuli Company as of March 15^th .