Short answer questions. Answer each question in the spaces provided. Honey and Maggie are the owners of Happy Pet Supplies, a business that provides pet products. In each of the following three situations below; (1 a), b) and c)), identify the assumption or principle that has been violated and explain why the assumption has been violated. 1) a) Happy Pet Supplies purchased shop racking from China and decided to put the cost in their accounting records as 35,000. ( is the symbol for the Chinese Yuan currency.). (2 marks) b) Happy Pet Supplies reported Inventory at its market value of $2700. The inventory cost the business $1900 when it was purchased (2 marks) c) Honey used business money to pay for her sons dental bill. (2 marks) 2) If equity in Happy Pet Supplies at the beginning of the year was $510,000 and at the end of the year was $565,000, no capital contributions were made and drawings during the year were $20,000, how much profit was earned during the year? (1 mark) 3) What type of business structure do you believe the business Happy Pet Supplies has? Explain your answer (2 marks) 4) Based on your answer in 3) above, do you think that Happy Pet Supplies would have Limited or Unlimited Liability. Explain your answer. (2 marks) 5) How do you calculate Liabilities for Happy Pet Supplies using the Accounting Equation? (1 mark) 6) Happy Pet Supplies plans to produce a Balance Sheet year. Explain why a Balance Sheet is required. (1 mark) 7) There are three (3) sections to the Cash Flow Statement. Indicate each section and provide one example of a transaction that would belong to that section. (6 marks)