Question: Prepare a balance sheet for Island Foods, Inc. as of March $31,2013.$ ALL INFORMATION TO ANSWER IS INCLUDED BELOW: Preparing Financial Statements from Accounting Events: In January $2015,$ Susan and Clark Shipley, co$-$owners of Island Foods, Inc. began discussing the possibility of expanding their restaurant business from a single location in Glendale, Arizona, to two additional locations $-$ one in Scottsdale and a second in Phoenix. Although the Glendale restaurant had only been open for about two years, it had attracted a loyal customer base from neighborhood businesses and schools. Despite the success of the Glendale restaurant in its first two years of operations, the Shipleys would still need to borrow money to finance the two new restaurants. Susan and Clark knew that they would be expected to present a set of recent financial statements as part of any loan proposal. So$,$ the co$-$owners spent an afternoon compiling data regarding the key transactions of the two preceding years. Background In early $2013,$ Clark and Susan Shipley moved from the damp, gray environment of Seattle, Washington, to the dry, sunny climate of Phoenix, Arizona. After some reflection on their life in Seattle, as well as an analysis of the local business environment in the Phoenix area, they concluded that they would like to own and manage a restaurant. Glendale was Arizona's third largest city, but it was not noted for a plethora of eating establishments, and those that did exist were principally Italian, Mexican, or fast food. The Shipleys concluded that their restaurant would feature Japanese rice bowls and operate under the name Island Teriyaki. With that decision made, Clark and Susan began the long and difficult process of setting up their restaurant. In March $2013,$ they formed Island Foods, Inc. by contributing $$10,000$ in cash in exchange for all of the company $\text{'}$s $1,000$ shares of stock. Clark convinced his parents to loan the new venture $$120,000$ in cash, with principal payable at the rate of $$12,000$ per year over ten years and interest payable at a rate of $7\mathrm{.}5$ percent on the outstanding balance as of the beginning of the loan's year. The loan agreement was signed on March $31,2013,$ and provided that both principal and interest would be paid only once a year on March $31.$ During March, the Shipleys searched for a suitable location for the restaurant. Clark negotiated a lease for approximately $2,000$ square feet of retail space at a rate of $$1,400$ per month. The lease agreement ran for five years, with an option to renew for five more years. The landlord agreed to give the Shipleys three months of free rent on the front end of the lease in order to help the new business survive the critical start$-$up period. Also during the month of March, Clark arranged to buy a commercial refrigerator, range, and grill for $$26,000$ in cash, to be delivered and installed on March $31.$ Discussions with the seller indicated that the kitchen equipment should last for five years. Clark and Susan also purchased a computer system, with restaurant$-$specific software already installed, at a cost of $$12,000$ cash. While the system could last indefinitely, Susan suggested that it be depreciated over six years. Other purchases included food preparation equipment at a cost of $$1,200$ cash and various restaurant furniture and fixtures at a cost of $$2,700$ in cash; the equipment, furniture, and fixtures were expected to have a useful life of three years. To enable the restaurant to be fully operational on April $1,$ the landlord allowed the Shipleys' carpenter, electrician, painters, and plumbers to begin renovations to the leased store on March $30$ and $31.$ Working round$-$the$-$clock, the workers completed all necessary improvements and renovations to the leased space at a cost of $$68,000$ in cash. On March $31,$ the purchased kitchen equipment was delivered and Island Teriyaki opened for business as planned on April $1,2013.$ venues In general, all restaurant sales were cash transactions; however, the Shipleys had developed a personal relationship with the general manager of one of Glendale's local businesses. As a courtesy to him, they had agreed to cater the company $\text{'}$s New Year $\text{'}$s Eve party each year and to bill the compai directly. The billings totaled $\backslash (\backslash$$ $3,000\backslash )$ in $2013$ and $\backslash (\backslash$$ $5,000\backslash )$ in $2014,$ and were pa by the company within $15$ days of the following month. penses Food costs Susan usually sat down once a week to write checks for any recent bills. Consequently, by year$-$end, only one week of food costs remained unpaid, totaling $\backslash (\backslash$$ $9,000\backslash )$ in $2013$ and $\backslash (\backslash$$ $12,000\backslash )$ in $2014.$ Supply costs Since payment on delivery was required for these miscellaneous restaurant supplies $($such as ice, napkins, etc.$),$ Susan usually paid this bill directly out of petty cash. Utility charges At year$-$end one month's payment for electricity, telephone, and water remained due. Employee wages Because Clark did much of the cooking himself while Susan worked on food and sauce preparation, the Shipleys were able to keep their labor costs fairly low. They also made a conscious decision to hire local high school and college students. At year$-$end, Clark determined that one week of wages, amounting to $\backslash (\backslash$$ $1,100\backslash )$ in $2013$ and $\backslash (\backslash$$ $1,400\backslash )$ in $2014,$ were due to employees. Licenses Clark paid the one$-$time Glendale "new business license" fee at $9$ a$.$m$.$ on April $1,2013,$ to enable the business to immediately begin operations. Insurance On April $1,2013,$ the Shipley s purchased a three$-$year "all risks" insurance policy for $\backslash (\backslash$$ $18,000\backslash )$ cash. The policy was very comprehensive, covering loss due to theft, fire, or storm damage; as well as such business related risks as lawsiits arising from customer injury while on the restaurant premises. Income taxes For purposes of preparing the accrual financial statements, Clark and Sus decided to assume that income taxes would be paid on April $15$ at a rate of percent. Owner compensation A review of the stored data revealed that the Shipleys had withdrawn $\backslash (\backslash$$ $25,000\backslash )$ in cash for personal use in $2013$ and $\backslash (\backslash$$ $40,000\backslash )$ in $2014.$ For purposes of the loan proposal, Susan decided to treat these withdrawals as dividends. Prepare an income Statement, balance sheet, and cash flow statement as of Dec. $31,2013$ and Dec. $31,2014$