The following adjusted trial balance has been extracted from the records of Dark Edge Sports Inc. on December 31, 2015, its second fiscal year-end.

	Account Balances
	Dr.		Cr.
Accounts Payable			$8,350
Accounts Receivable	$18,700
Accumulated Depreciation Equipment			2,000
Advertising Expense	7,200
Bank Loan, due May 31, 2016			10,000
Cash	1,500
Depreciation Expense	1,100
Dividends	600
Equipment	12,500
Income Taxes Expense	2,300
Income Taxes Payable			4,600
Insurance Expense	1,200
Interest and Bank Charges Expense	1,300
Prepaid Insurance	1,300
Prepaid Rent	600
Retained Earnings			2,000
Rent Expense	17,950
Revenue			80,000
Salaries Expense	39,000
Share Capital			3,000
Telephone Expense	1,100
Utilities Expense	3,600
Totals	$109,950		$109,950

Note: No shares were issued during 2015.

Required:

1. Calculate net income for year ended December 31, 2015.

2. Prepare a statement of changes in equity for the year ended December 31, 2015.

3. Prepare a classified balance sheet at December 31, 2015.

4. By what amounts do total current liabilities exceed total current assets at December 31, 2015?

5. Assume a $5,000 bank loan is received, payable in six months. Will this improve the negative working capital situation calculated in (4) above? Calculate the effect on your answer to (4) above?