Where would I begin this problem?

The Toronto Diner, opened as a sole proprietorship by Felix Fudd, recorded the following transactions during its initial month of operations:
1) Rented facilities for $3,000 per month and paid the lessor $9,000 for the first three months.
2) Purchased eqquipment costing $30,000 on the first month. The diner put 20 percent down and borrowed the remained from Second Bank. (equipment will be depreciated over 60 months using the straight-line method. Assume a $3,000 salvage value.)
3) Sold 1,800 meals during the month at an average sales price of #15. Twenty percent of the meals were sold on account, while the remained were cash sales. None of the charge sales were collected by the end of the first month.
4) Cost of food sold percentage is 30 percent. Food purchases totaled $10,000 during the first month, of which 60 percent were paid for during the month.
5) Paid labor costs of 30 percent of sales during the month.
6) Paid all other expenses, which totaled $6,000, with cash.
7)Felix opened the business on the first of the month by investing $50,000.
8) Felix's tax rate is 30 percent. Taxes will be paid subsequent to the first month.

Required:
1) Determine the net income for the first month of business.
2) Determine the total sources and use of cash for the first month.

Start by setting up T accounts for all of the accounts you will need, then journalize transactions 1 through 8. After the journalizing you need to post your journal entries to your T accounts, then get the balances for each T account. After this I would do a worksheet to help you determine your net income for the first month.

For sources and use of Cash you need to figure out where cash came from (incoming cash) and where your cash went (outgoing cash) during the month. Incoming cash would be from an owner investment, getting a loan, providing a good or service, or a customer paying in advance for a good or service. Outgoing cash would be for making a loan payment or interest payment, paying an expense, paying for goods, or making a payment on account.