problem ste the workings of accounts in reflecting the decisions and actions o a frm, suppose that as an individual is to ment opportunity and the following sequence of events occurs over a period of one year. 1. An XYZ firm on 01/01/2016 (at the beginning of the year) had $25,000 on accounts receivable, $10,000n undertake an invest accounts payable, $5,000 worth of raw materials in its stock and invested $130,000 cash as capital. During the year, it: 2. Purchased equipment for a total cost of $20,000 by paying cash. 3. Borrowed $15,000 through a note to the bank. 4. Bought raw materials for $14,000 on accounts payable. 5. Paid $35,000 cash for labor 6. It used $15,000 worth of raw materials to produce 10,000 units of finished products valued at $6 each. 7. Sold all goods purchased for year, 10,000 units at $15 each 8. Paid $5,000 of accounts payable and $5,000 of bank note. a) Present the balance sheet at the beginning and the end of the year b) How much net income did the XYZ firm earn