Since the plants have a 12-week growth cycle and are completely harvested, they would not be accounted for as bearer plants. As the growing season is only 90 days at Hope-Hy, Dominic is not certain if this would be a good fit for them. He has read that successful cannabis producers turn their inventory over 6 times per year. They have approached the bank for financing for the plants and the bank would like to see positive working capital and a current ratio of less than two. You have prepared the following projected information for Hope-Hy for the year ended December 31, 2021

		Projected December 31, 2021 (thousands)
Current assets		214
Long term assets		3,840
Total assets		4,054
Current liabilities		89
Long term debt		2,580
Common shares		250
Retained earnings		1,135
Total Liabilities and equity		4,054

Explaining how to account for the above transactions in their GAAP? Show full calculation.