Using the information provided to you for the new start-up fast food restaurant, "ABC" create the following financial statements;

1. Balance Sheets: Year 0, 1 and Forecasted Year 2

2. Income Statements: Year 1 and Forecasted Year 2

3. Statement of Cash Flow: Year 1 and Forecasted Year 2

Opening Account Balances

- Approved Bank Loan from ADIBANK of $550,000 at 3%APR on a 10 year term

- The business currently holds a cash balance of 55,200

- Company holds 9,200's worth of inventory

- All appliances: estimated total value of 70,000

- The business has brand new vehicle, valued at $31,650

- $3,000 in Glassware and China

- Restaurant is owned, not rented, and the building's estimated value is $310,000

- Furniture and Fixtures, estimated value of $15,000

- $10,000 budgeted for startup costs

End of Year 1

- Revenues are as follows;

- $330,000 tea sales (However we give 20% discounts to students, which are 30% of our clientele! - ONLY on Tea)

- $185,000 biscuit sales

- $ 48,000 in Merchandise sales

- Cost of foods and drinks sold is 18%

- Salaries paid at 190,000

- Operating expenses were $70,000 (NOT including Start-up expenses)

- Monthly payments towards loan

- 25% of Profit paid out in dividends

- 10% increase in inventory pars per year

- Depreciation of vehicles at 22% per year

- Depreciation of Appliances, Glassware & China & Furniture at 10% per year

- Appreciation of Building at 2.5% per year

- tax rate is 11.5%, and we pay last year's balance in the current year

End of Year 2 (Forecast - 20% growth assumed)

- a second truck is purchased at the beginning of the year for $31,650, and amortized over 3 years at 0.9% interest

- A new door sign fixture is purchased at the END of the year! Original price was $7500, but we got it for $5000!

- Students have now become 40% of our clientele!

- Lord Fancypants is so happy with his staff, that he gives everyone a 10% Bonus at the end of the year for the Holidays.

- We get approved for a new loan from TSOMBANK at the beginning of the year for 150,000 at 4.5%APR - 12 year term