Question 1: An entrepreneur is going to open a new venture. He estimates that he needs cash on hand of $50,000, inventory of $50,000, and fixed assets of $200,000. His suppliers allow him to pay 40% of the inventory late. He has $100,000 (equity) to invest in the business and borrows the rest of the required capital from a bank with the interest rate of 10% annually. Please help the entrepreneur to prepare his start-up balance sheet (or the statement of uses and sources of funds). Question 2: The entrepreneur in question 1 estimates that on average he will sell 10,000 products each year. His product is priced at $100. The cost of goods sold per unit is $50. His estimated operating cost is $200,000 in the first year (not including depreciation). Depreciation is 10% of total gross fixed assets (which can be found in the balance sheet in question 1). Income tax is 30%. Please help the entrepreneur to prepare a pro forma income statement for the first year. (Note that he has an interest expense as specified in question 1). Question 3: Using the above information (in questions 1 & 2), calculate the break-even quantity, return on equity, and return on assets