Department of Sport and Entertainment ManagementSport Business and FinanceJanuary 15, 2020Accounting Assignment:DUE: Monday January 20 – @ 5:00 pm (Blackboard)It is necessary to understand accounting to analyze financialinformation. To assist in this effort, the following case problemdescribes a start up sports enterprise. You are to formulate abalance sheet and income statement over a five-year period from thefacts given. You do not need to prepare a statement of cash flows atthis time. This is a golf course.The facts in the case study are: 1. Borrow $600,000 at 8% over 10 years from Nations Bank.2. Investor provides $400,000 to fund your sports enterprise.3. Long term assets depreciated on a straight-line basis over 20 years.4. Short term assets depreciated over five years using the straight-line basis.5. Green fees - 7,000 rounds at $20.00 per round. Increases 875 rounds per year.6. 247. Annual memberships - 192 @ $250.00 per year. Increases by 24 memberships each year with no decrease in initial members.8. Initiation fees were $14,000 in the first year and increased $1,750 per year.9. Pro shop revenue was $48,000 and increased $6,000 per year.10. Bar/lounge grossed $18,400 the first year and increased $2,300per year.11. Cost of Goods Sold:Pro - shop: Year one $35,200 and increased $4,400 per year.Bar/lounge: Year one $11,200 and increases $1,400 per year.12. Other Given information:Salaries: $115,420, increases $3,463 per year.Utilities:$1,000, increases $100 per year.Maintenance: $600, increases $75 per year.13. Spent $800,000 on a building.Spent $100,000 on land.Spent $7,500 on equipment.Spent $16,000 on Inventory. Inventory increases by $2,000 per year.14. Accounts Payable is $10,000 in year one through year five.15. Purchased an additional $750 a year in equipment starting in yeartwo (2).16. Accounts receivable balance year end $8,040. Increases $1,005 per year (2-5).17. Don't forget interest expense.2Don't forget depreciation expense.Income tax expense should be calculated at 34%.TO DO: PREPARE BALANCE SHEET AND INCOME STATEMENTS FOR A FIVE-YEARPERIOD. Use the following format.Sport Golf EnterprisesBALANCE SHEETAssets: Year 1 Year 2 Year 3 Year 4 Year 5CashAccounts receivableInventoryOther current assetsTotal current assetsLandBuildingEquipment Accum. Deprec.Total PP&E ______________________ ____________________________ Total AssetsLiabilities and Owner Equity:Current installments of Long-term debtAccounts payableTotal current liab.Long term debtOther L-T liabilitiesTotal liabilitiesOwners equity:Owner's equityRetained earnings3Total equityTotal liabilities and Equity ===================================================Golf Sport EnterprisesIncome StatementYear 1 Year 2 Year 3 Year 4 Year 5Revenues:Green feesDriving rangeAnnual membership duesMembership initiation feesPro shopBar/loungeTotal revenuesLess: Cost of goods soldPro shopBar/lounge Total COGS Gross profit===================================================Operating expensesSalariesUtilitiesMaintenanceDepreciationTotal operating expensesEarnings before interest expense4Interest expense====================================================Earnings before income taxIncome tax expense====================================================Net income (loss)====================================================H: