Preparing Basic Financial Statements You work part-time at a bank and have been given the following information by a local business that is seeking a loan:

You are to organize the information into an income statement and a balance sheet for your supervisor.

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Accounts payable to suppliers Accounts receivable from customers Wages payable to employees Additional paid-in capital from owners Administrative expenses Cash Common stock outstanding Cost of goods sold General expenses Interest income $ 20,000 82,000 11.000 60,000 35,000 12,000 100,000 320,000 20,000 10,000 Interest expense 15.000 Inventory 60,000 Long-term obligations (notes) 160,000 Property, plant, and equipment 346,000 Income tax expense 38,000 Retained earnings Sales Selling expenses 149,000 550,000 75,000