Please use the Ledgers to complete this section.

Opening Account Balances

- Pre-existing Bank Loan from ADIBANK of $150,000

- The business currently holds a cash balance of 5,200

- Company holds 4,500's worth of inventory

- All appliances: estimated total value of 40,000

- The business has brand new vehicle, valued at $27,450

- $3,000 in Glassware and China

- Restaurant is owned, not rented, and the building's estimated value is $367,000

- Furniture and Fixtures, estimated value of $14,000

- $12,000 budgeted for startup costs

End of Year 1

- Revenues are as follows;

- $298,000 tea sales

- $203,000 biscuit sales

- $ 37,500 in Merchandise sales

- We give 25% discounts to students on all F&B, who are 20% of our clientele!

- Cost of foods sold is 23%

- cost of drinks sold is 9%

- Salaries paid at 183,467

- Operating expenses were $100,000 - NOT including S/U Costs, you must add these

- Monthly payments towards loan of $2000

- 8% increase in inventories per year

- Tax rate is 13%

- 28% of Profit paid out in dividends

- Depreciation of vehicles at 22% per year

- Depreciation of Appliances, Glassware & China & Furniture at 15% per year

- Appreciation of Building at 4.5% per year

End of Year 2

- Assumed Growth of 10%

Using the information provided to you for the new start-up fast food restaurant, "Carlos's Tea and Biscuits" create the following financial statements;

1.Opening Balance Sheet (10 Points)

2.End of First Year Income Statement (10 Points)

3.End of First Year Balance Sheet (10 Points)