Thank-you so much Tax Pro for your insight. You may still be able to answer my question.
"This is the FIRST YEAR that a balance sheet is required with sales over 250K"
There are no numbers to carry forward from the previous balance sheets.
Initial owner investment for cash in the bank has been repaid long ago.
"Lets ASSUME there is zero net income"
Lets ASSUME that expenses are also 250K. Therefore zeroing out the income.
There are no receivables and all bills are paid at the end of the year so no payables. But reporting is on a cash basis so nothing is accrued anyway.
There is no inventory value.
There are no business assets since everything is rented.
You may have read through my question too quickly. Admittedly, my weakest area is understanding all the background areas that cause a balance sheet to be out of balance. Perhaps you could take another look?
