Assume that you are the president of Highlight Construction Company. At the end of the first year (December 31, 2014) of operations, the following financial data for the company are available:

Required:Using the financial statement exhibits in the chapter as models and showing computations:
1. Prepare a summarized income statement for the year 2014.
2. Prepare a statement of stockholders’ equity for the year 2014.
3. Prepare a balance sheet al December 31,2014.

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Cash Receivables from customers (all considered collectible) Inventory of merchandise (based on physical count and priced at cost) Equipment owned, at cost less used portion Accounts payable owed to suppliers Salary payable for 2014 (on December 31, 2014, this was 25,600 10,800 81,000 42,000 46,140 owed to an employee who was away because of an emergency; will return around January 10, 2015, at which time the payment will be made) Total sales revenue Expenses, including the cost of the merchandise sold (excluding income taxes Income taxes expense at 30% × pretax income, all paid during 2014 Common stock (December 31, 2014) Dividends declared and paid during 2014 128,400 80,200 5 87,000 10,000