Mathematica's differential equation solving functions can be applied to many classes of differential equations, automatically selecting the appropriate algorithms without needing pre-processing by the user. One such class of eqations are DAE's.
Set up the DAE given by

with the algebraic constraint

:
Use
DSolve to solve the equation for

and

in terms of

:
You can also include the initial conditions

and

by including them in the first argument to
DSolve:
Now use
DSolve again to find a solution: