The balance sheet items of The Original Malt Shop (arranged in alphabelical order) were as fol- PROBLEM 2.8 Preparing Financial Statem lows at the close of business on Seplember 30, 2001: EHects of Business Transa The transactions occurring during the first weck of October were: Oct. 3 Martin invested an additional $30,000 cash in the business. The accounts payable were paid in full. (No payment was made on the notes payable.) Oct. 6 More furniture was purchased on account at a cost of $18,000, to be paid within 30 days. Supplies were purchased for $1,000 cash from a restaurant supply center that was going out of business. These supplies would have cost $1,875 if purchased under normal circumstances. Cct. 1-6 Revenues of $5,500 were earned and paid in cash. Expenses required to earn the revenues of $4,000 were incurred and poid in cash. Instruciions a. Prepare a balance sheet at September 30, 2001. (You will need to compute the missing figure for Notes Payable.) b. Prepare a balance sheet at October 6, 2001. Also prepare an income statement and a statement of cash flows for the period Oetober 16,2001. In your statement of cash flows, treat the purchase of supplies and the payment of accounts payable as operating activities. c. Assume the note payable does not come due for several years. Is The Original Malt Shop in a stronger financial position on September 30 or on October 6 ? Explain briefly