Financial Statement Preparation Montage Company reported the following income statement and balance sheet amounts at December 31, 2000:

a. Prepare an income statement for Montage Company for 2000.

b. Compute the balance in retained earnings at December 31, 2000.

c. Prepare a classified balance sheet at December 31, 2000.

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Sales Salary and wages payable $635,000 21,000 Prepaid insurance 16,000 Depreciation expense 25,000 Preferred stock 50,000 Salary and wage expense 140,000 Accounts payable 76,000 Land 74,000 Federal income tax expense 90,000 Accumulated depreciation 160,000 Common stock 100,000 Accounts receivable (net) 132,000 Notes payable (due January 1, 2005) 195,000 Cost of goods sold 310,000 Cash 80,000 Buildings and equipment 440,000 Inventory 90,000 Retained earnings, January 1, 2000 160,000