Preparing the Basic Financial Statements Marilyn Miller opened a floral shop using $45,000 of her own cash savings and with $135,000 in cash borrowed from her parents. She signed a lease on a small store for one year, agreeing to pay $3,150 per month in rent. During the first year of operations, Marilyn purchased fresh flowers from a local nursery for $22,500, paid $10,800 for utilities, and generated floral sales totaling $108,000. (Assume all transactions were cash transactions). Marilyn was hoping to be able to repay her parents one-half of the borrowed money at the end of the first year of operations. (a) Enter each of the above events in to the balance sheet equation as illustrated in the chapter. (b)Prepare an income statement, ( c) balance sheet, and (d) statement of cash flow for the floral shop.

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