please show work each step of the way

Jeremy Slacker started the Del Fuego Surf Shop on January I after determining that business school classes conflicted with his preferred activity. He invested $50,000 in the shop- $25,000 of his own savings and $25,000 borrowed from an acquaintance. The loan is to be repoid in 5 years. Jereny will pay the lender annual interest at a rate of 8 percent. Shortly after openine. Jereny realized that he is not the best financial planner and has come to you for help. With some proddine you are able to establish that Jeremy plans to sell only two models of surfboard, the Zuma and the Coronado. at least for the first year. Data on the boards is eiven as follows. Additional information on the planned operations for the year includes the following 1. Equipment costine $40,000 was purchased for cash when the store opened. The equipment will be depreciated over ftve years usine straipht-line depreciation. 2. Because of the fantastic weather in Del Fuego, Jereny expects sales to occur uniformly over the year: Sales will be both for cash ( 60 percent) and on account (40 percent). Sales on account are assumed to be collected in two months. 3. Jereny will maintain irventory equal to onehalf of a month's sales. All boards will be purchased from the manufacturer on credit with payment made one month after purchase. 4. Annual cash selline, eeneral, and administrative expenses are $36,000 fixed plus 10 percent of revenues. 5. Jeremy's tax rate is 40 percent. Required Prepare the followine budeeted statements based on the data and assumptions available: a. Income statement for the year. b. Yearend (December 31) balance sheet