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Case for company's financial state (preparation and valuation of financial statements) Company owners decided to start the business of producing office furniture. Company owners developed business plan, to get additional financing from the bank as a long term loan. Company owners decided to invest 100 000 EUR in cash and bank agreed to give 50 000 EUR loan with 3,6% rate for 3 years period (loan should be repaid once per year, but interest payments have to be made every month). Also these financial operations were made at the beginning of business processes: 1. 6 000 EUR prepayment was made for the rent of production and storage premises for 3 months; 2. Equipment was purchased on account at a cost of 72 000 EUR; 3. Cash of 50 000 EUR was paid to creditors from whom equipment was purchased; 4. Raw materials and other parts for production costing 20 000 EUR was purchased on credit terms; 5. Paid wages for employees in advance for two weeks - 5 000 EUR; Company started its activities and when month passed decided to prepare financial statements. During that month also: 1. Furniture was sold to customers on account for 40 000 EUR; 2. Paid cash for utilities - 1 300 EUR; 3. Wages in amount or 6 000 EUR have been earned by the employees, but have not been paid; 4. Equipment depreciated (company decided to use straight line to zero method, with 10 years useful life for equipment); 5. The inventory on hand was counted and assigned a cost of 8 000 EUR; 6. It has been estimated, that sales in the amount of 4 000 EUR are not collectible; Company have got the enquiry from potential customer to produce furniture within big contract agreement for the price of 150 000 EUR, but for it company needs to by raw materials and different parts costing 34 000 EUR and potential supplier requires 10 000 EUR prepayment. Customer is promising to pay all the money in two months. Will you advice to take this contract for the company