PREPARE THE FOUR FINANCIAL STATEMENTS 1. INCOME STATEMENT 2. RETAINED EARNINGS STATEMENT 3. BALANCE SHEET 4. CASH FLOW STATEMENT

INCOME STATEMENT. Income Statement Sales$5,000 Less Costs of Goods Sold($2000) Gross Margain$3000 Operating Expenses Selling Expense$100 Administrative Expense$200 Interest Expense$300 Income Before Tax$2400 Less Tax Expense$400 Net Income$2000

RETAINED EARNINGS STATEMENT BEGINNING BALANCE $20,000 PLUS NET INCOME 2000 LESS DIVIDENTS PAID 1000 ENDING BALANCE $21000

BALANCE SHEET ASSETS CURRENT ASSETS CASH MARKETABLE SECURITES ACCOUNTS RECEIVABLE INVENTORY PREPAID EXPENSES TOTAL CURRENT ASSETS

BALANCE SHEET (CONT) PROPERTY PLANT AND EQUIPMENT EQUIPMENT BUILDING LAND TOTAL PROPERTY PLANT AND EQUIPMENT TOTAL ASSETS

BALANCE SHEET (CONT) LIABILITIES CURRENT LIABILITIES ACCOUNTS PAYABLE TAXES PAYABLE INTEREST PAYABLE WAGES PAYABLE TOTAL CURRENT LIABILITIES

BALANCE SHEET CONTINUED LONG TERM LIABILITIES BONDS PAYABLE PENSION PAYABLE TOTAL LONG TERM LIABILITIES TOTAL LIABILITIES

BALANCE SHEET (CONT) OWNERS EQUITY COMMON STOCK RETAINED EARNINGS TOTAL OWNERS EQUITY TOTAL LIABILITIES PLUS OWNERS EQUITY

CASH FLOW STATEMENT OPERATING SECTION INVESTING SECTION FINANCING SECTION NET CASH IN