Based on the following data, please create the balance sheet (Assets, Liabilities and Owners Equity) for the following company as of:

1. Day 1 of operation
2. The end of the first year (Day 365)

Hint: You need to:

1. Create an income statement
2. Read the Notes carefully
3. Calculate the cash on Day 365 by determining the cash needed to make the balance Sheet balance

Account	Day 1 ($000s)	Day 365 ($000s)	Notes
Monthly Sales	$0	$40,000	Sales, expenses etc. in the Income Statement are the same for all 12 months
COGS - % of sales	70%	70%	Company pays all COGS in 60 Days or two months
Monthly Operating Expenses	$0	$6,000	Company pays operating expenses during each month
Income Tax Liability - % of Income before taxes	25%	25%	Company pays taxes 3 months after they are due
Capital Investment (PPE) during year	$0	$20,000	Paid on day 90 of year one
Depreciation for total year	$0	$15,000	Included in COGS and Operating Expenses (above) utilized for the Income Statement
Cash	$25,000	Calculate	Contributed by Owners
Accounts Receivable	$0	Calculate	Customers pay invoices in 45 days or one and one-half months
Inventory	$0	$35,000
Accounts Payable	$0	Calculate
Bonds Issued	$0	$30,000	10 year maturity
Accrued Taxes	$0	Calculate
Owners Paid-in Capital	$10,000	Calculate
Retained Earnings	$0	Calculate
Owners Equity	$15,000	Calculate

Assets ($000's)	Beginning of Day 1	End of Day 365		Liabilities and Equity (000's)	Beginning of Day 1	End of Day 365
Cash				Liabilities
Accounts Receivable				Accounts Payable
Inventory				Accrued taxes
				Bonds
Capital Investment (PPE)
Depreciation				Owners' Equity
				Owners Paid-In Capital
				Retained Earnings
				Dividends Paid
Total Assets				Total Liabilities and Equity