Ginger's Flower Company was started in 2011 when it acquired \(\$ 80,000\) cash from the issue of common stock. The following data summarize the company's first three years' operating activities. Assume that all transactions were cash transactions.

Required
Prepare an income statement (use multistep format) and balance sheet for each fiscal year. (Record the transaction data for each accounting period in T-accounts before preparing the statements for that year.)

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2011 2012 2013 Purchases of inventory $ 60,000 $ 90,000 $ 130,000 Sales 102,000 146,000 220,000 Cost of goods sold 54,000 78,000 140,000 Selling and administrative expenses 40,000 52,000 72,000