William Murray achieved one of his life-long dreams by opening his own business, The Caddie Shack Driving Range, on May 1, 2012. He invested $20,000 of his own savings in the business. He paid $6,000 cash to have a small building constructed to house the operations and spent $800 on golf clubs, golf balls, and yardage signs. Murray leased 4 acres of land at a cost of $1,000 per month. (He paid the first month's rent in cash). During the first month, advertising costs totaled $750, of which $150 was unpaid at the end of the month. Murray paid his three nephews $400 for retrieving golf balls. He deposited in the company's bank account all revenues from customers ($4,700). On May 15, Murray withdrew $800 in cash for personal use. On May 31, the company received a utility bill for $100, but did not immediately pay it. On May 31, the balance in the company bank account was $ 15,100. Murray is felling pretty good about results for the first month, but his estimate of profitability ranges from a loss of $4,900 to a profit of $1,650. a. Prepare a balance sheet at May 31, 2012. (Murray appropriately records any depreciation expense on a quarterly basis). How could Murray have determined that the business operated at profit $1.6503