This document has a copy of the hardware store example in "Understanding Finance Statements". Please prepare a balance sheet for the end of week 2, 3, 4, & 5 (four balance sheets). Assumptions: 1) Assume that $25,000 of inventory will be sold in week 2, and the gross margin is now 50%. (you might need to lookup how to calculate gross margin. I show it in the lecture) 2) Inventory sales increase by $15000 each week for the following three weeks. Sales proportion of credit vs. cash will be 60% cash vs 40% credit. For simplicity, assume sales are made on the first day of the week. You might need to replenish inventory at times. 2) Add a weekly expenses of $5,000 for wages and other expenses. This will be paid from the cash account at the end of each week. 3) The receivables will arrive 2 weeks after being sold. The inventory purchases (payables) are due 1 weeks after being purchased.The balance sheet would now look like this: BALANCE SHEET CURRENT ASSETS CURRENT LIABILITIES Cash $ 50,000 Accounts Payable $ 25,000 Inventory $ 50,000 Total Current Assets $ 100,000 Total Current Liabilities $ 25,000 FIXED ASSETS LONG TERM DEBT Building $ 100,090 Mortgage 75,000 Total Fixed Assets $ 100,000 Total Long Term Debt $ 75,000 Net Worth $ 100,000 Total $ 200,000 Total $ 200,000