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You have just created a corporation for your lemonade business. The corporation initially has 100 shares outstanding, all of which are owned by you. To raise some capital, you go to a venture capitalist who's willing to invest $25,000 for 180 newly issued shares. You borrow another $12,000 from the bank, who charges an annual interest rate of 15%. Construct the balance sheet of your corporation after meeting with the bank. To get started, you need to buy some assets. You buy some inventory, which will cost $11,000 and be replenished every year. You also purchase one lemonade stand, which costs $9,000 and has a 5-year life. Assume straight-line depreciation. Construct the balance sheet of your corporation after purchasing the assets. Now, we are ready to operate. Here are our additional assumptions. (i) Sales is $24,000 per year per stand. (ii) Inventory cost is $11,000 per year per stand. (iii) Labor cost is $6,000 per year per stand. (iv) SGA cost is $2,000 per year per stand. (v) R&D cost is 5% of revenue per year. (vi) Tax rate is 21%. Construct the income statement for your firm at year 1. After the first year of operation, you go to the bank and borrow another $25,000. You purchase your second lemonade stand. You increase your inventory by another $11,000. You don't sell additional equity or pay out any dividend. Construct the cash flow statement for your firm at the end of year 1. Construct your final balance sheet at the end of year 1

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