1. Bike-With-Us Corporation, a specialty bicycle parts replacement venture, was started last year by two former professional bicycle riders who had substantial competitive racing experience including competing in the Tour de France. The two entrepreneurs borrowed $50,000 from members of their families and each put up $30,000 in equity capital. Retail space was rented and $60,000 was spent for fixtures and store equipment. Following are the abbreviated income statement and balance sheet information for the Bike-With-Us Corporation after one complete year of operation.
Operating Costs 285,000
Fixed Assets, Net 50,000
Long-Term Loan 50,000
Common Equity 60,000
A. Prepare an income statement and a balance sheet for the Bike-With-Us Corporation using only the information provided above.