Problem 1 (50 points): Take the following information on a company and prepare its balance sheet just past the end of its fifth year. To make things simpler, also assume a year with 12 months of exactly 30 days each. Points are scored for the thick-bordered cells onlv The company has gross sales of $120 thousand per month and the pattern of sales is en, i.e. there is no cyclical pattern to sales b. COGS for the business is 50% and is 75% materials. c. There is enough raw material on hand to support 3 months of manufacturing, and d. For simplicity, assume we have no work in progress. f. Customers are large firms, which pay us 2 months after we deliver our product. there are enough finished goods in the warehouse to accommodate I month of orders The company pays its suppliers one month after goods are received. g. The owners started the business with an initial capital injection of $1.5 million and a $750 thousand long-term bank loan, just over 5 years ago. The bank loan principle is payable in 10 equal annual payments, and the 5th annual payment has recently been made. In the first 5 years of the business, the company had a cumulative net income of $500 thousand, and paid dividends of $50 thousand for the first time this past year Monthly payroll is $50 thousand, paid monthly. We're currently half way between pay cycles k. All utilities and those types of bills have just recently been paid. The company bought $2 million in assets at startup and picked a straightline depreciation period of 20 years. No additional assets have been purchased. m. The business has $500 thousand in cash on hand and a short-term credit line that is paid down and/or drawn from based on the fluctuations of the business n. There are no short or long term investments, no prepaid expenses, no goodwill, and no repayable grants, and taxes are up to date