Mathematica's differential equation solving functions can be applied to many classes of differential equations, automatically selecting the appropriate algorithms without needing preprocessing by the user. One such class of equations is DAEs.
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: