ABC Clothing had opened on January 1, 2022. The following activities have occurred since the opening day:

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ABC Clothing had opened on January 1, 2022. The following activities have occurred since the opening day: on January 1st, the company received $40,000 of equity from investors on January 1st, the company took out a loan for $30,000 at 10% annual interest rate on January 17th, 2022, the company had purchased 7000 baseball caps from the manufacturer at $5 each. as of March 31, 2022, a total of 4000 of the baseball hats were sold, the only product offered by the company, for total of $36,000. Additional expenses: Rent $3,000/month was prepaid for all of 2022 Salaries: $2,000 a month

a) What is the companies net profit for the 1st quarter of 2022?

b) create a simple balance sheet statement for the company as March 31, 2022.