Prepare Cash flow statement,Balance sheet statement and Income statement of YOJ as of 31 December 2X20 following GAAP.

*Please show/explain how you arrived at the ending CASH balance in the solution,thank you.*

YOJ is a sole importer of garden tractors, which are purchased from a foreign producer and resold to local gardeners and hobby markets. The opening balance sheet of YOU as at 1 January 2x20 is as follows. YOJ Balance sheet 01/01/2x20 in Inventory 470,000 Share capital 750,000 Receivables 225,000 Retained earnings 250,000 Cash 305,000 Total assets 1,000,000 Total equity & liabilities 1,000,000 Detail information concerning the opening Balance sheet 01/01/2x20: Inventory consists of 1,000 pieces of merchandise, purchased in 2x19 for price of 470/piece Receivables consists of gross amount 250,000 owed by customers, reduced by the estimated uncollectible amounts (10% of the outstanding receivables, i.e. 25,000) Detail information about all transactions occurring during 2x20 1. Bank loan On 2 January 2x20, a 5-year bank loan is originated at total amount of 50,000. At the end of each year (i.e. on 31 December 2X20, 2X21, 2X22, 2X23 and 2X24), the company must repay one fifth of the loan (i.e. 10,000) plus accrued interest on the loan, equivalent to 8% of the outstanding balance as at the beginning of the year. 2. Tangible assets The loan is used to purchase two cars. The first car costs 35,000 and is to be used by the company's chief operating manager. Its expected useful life is 3 years and then it will be sold on a secondhand market for an estimated price of 5,000. The second car, purchased for 15,000, is to be used by the sales manager. Expected useful life is 6 years and the secondhand market price at the time of disposal is estimated to be 3,000. Both cars are purchased on 5 January 2x20 and run since then. 3. Inventory and sales Information on purchases and sales of merchandise: January: purchase of 750 pieces for 400/piece February to September: sales of 1,200 piece for 840,000 in total October: purchase of 450 pieces for 460/piece November to December: sales of 500 pieces for 400,000 in total Information on payments from customers: Do not forget that the company also has an opening balance of 1,000 pieces. All customers with due payments at the beginning of the year have paid except for one, owing 30,000, who went bankrupt YOJ received 220,000 and remaining 30,000 had to be written-off. At the year-end, there are outstanding receivables of 300,000 related to sales in 2X20. Based on its past experience, Yo estimates that 10% of the closing balance of trade receivables will never be collected. Information on payments to suppliers: January purchase of inventory has been paid to the supplier; purchase made in October is due in February 2X21 and the payment has not been done yet. 4. Rental In January 2x20, YOJ paid rental for the store and administrative offices. The contract is effective from January 2x20 to December 2x21 and the total amount paid for the store is 24,000 and for the offices 12,000 5. Employees The total salaries in 2X20 are 54,000 in the case of selling staff and 66,000 in the case of management and other administrative staff. Unpaid balance as of 31 December 2x20 is 14,000 (to be paid in January 2X21) 6. Income tax Company's tax advisor has prepared the tax-filling (tax-return), according to which income tax expense for 2x20 is, after adjusting accounting profit for all non-deductible expenses and non- taxable income, 26,000. Liability is payable on 1 April 2X21; YOJ has made advance payments of 15,000 during 2x20. Tasks required Financial statements 1. Account for all transactions described above. When necessary, select an appropriate accounting policy and describe it explicitly in your solution. In case of shortage of cash, YOJ has an agreement with its bank allowing YOJ to overdraw its bank account