Required information Problem 13-63 & Problem 13-64 (Algo) (LO 13-5, 6, 7, 9) {The foiiowing information appiies to the questions displayed beiow] Jeremy Slacker started the Del Fuego Surf Shop on January 1 after determining that business school classes conflicted with his preferred activity. He invested $60,000 in the shop$42,700 of his own savings and $30,000 borrowed from an acquaintance. The loan is to be repaid in 5 years. Jeremy will pay the lender annual interest at a rate of 8 percent. Shortly after opening, Jeremy realized that he is not the best financial planner and has come to you for help. With some prodding, you are able to establish that Jeremy plans to sell only two models of surfboard, the Zuma and the Coronado. for at least the first year. Data on the boards are given as follows. Zuma Coronado Expected annual sales (units) 726 369 Retail price (per unit) $488 $769 Purchase cost (per unit) 329 459 Additional information on the planned operations for the year includes the following. 1. Equipment costing $50,000 was purchased for cash when the store opened. The equipment will be depreciated over ve years using straightline depreciation. 2. Because of the fantastic weather in Del Fuego, Jeremy 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. Jeremy will maintain inventory 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 selling, general. and administrative expenses are $25,000 fixed plus 10 percent of revenues. 5. Jeremy's tax rate is 40 percent. Droblem 13-63 (Algo) Budgeted Financial Statements in a Retail Firm (L0 13-6, 7) Qequirecl: 1. Prepare an income statement for the year based on the data and assumptions available. 3. Prepare the yearend (December 31} balance sheet based on the data and assumptions available. Complete this question by entering your answers in the tabs below. Required A Required B Prepare an income statement for the year based on the data and assumptions available. Less other costs: : Required B > Required A Required B Prepare the yearend (December 31) balance sheet based on the data and assumptions available. Assets Current assets Total assets Liabilities and Net Worth Total liabilities Total net worth Total liabilities and net worth ( Required A