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

2. 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

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

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

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

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

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

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

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