Preparing a balance sheet and income statement. The accounting records of America Online reveal the following (amounts in thousands):

a. Prepare an income statement for America Online for the year ending June

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BALANCE SHEET ITEMS Cash Year 7 $124,000 June 30 Year 8 $ 631,000 Accounts Receivable 65,000 104,000 Other Current Assets 134,000 195,000 Property. Plant, and Equipment (net of depreciation) 233,000 363,000 Investment in Securities (noncurrent) 277,000 921,000 Accounts Payable to Suppliers 68,000 87.000 Other Current Liabilities 485,000 807,000 Long-term Debt 140.000 722,000 647,000 1,013,000 (507,000) (415,000) Common Stock Retained Earnings (Deficit) INCOME STATEMENT ITEMS Sales Revenue Interest Revenue Cost of Goods Sold Research and Development Expense For Year 8 $2,600,000 21.000 1,678,000 175,000 (continued)