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)

Please us the attached 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%