P4 - Kaplan Exam kit Q2(Wurrall Inc - June 04)

Hi John, On the above question, we've been asked to forecast the P/L and balance sheet. As per the question, the short-term borrowing will be the balancing figure. However, I cannot get the balancing figure until I have the reserves for the year, and I cannot have the reserves amount until i have the profit for the year. And to arrive at the profit, I need to know the net interest payable for which i need to know the short-term loan amount(which is the balancing figure) to consider its interest. I don't know if i am missing anything on the question, could you please help me on this? Thank you.