2-2B. (Review offinancial statements) Prepare a balance sheet and income statement as of December 31, 2003, for the Sabine Mfg. Co. from the following list of items. Ignore income taxes and interest expense.

Accounts receivable $150,000 Machinery and equipment 700,000 Accumulated depreciation 236,000 Notes payable---eurrent 90,000 Net sales 900,000 Inventory 110,000 Accounts payable 90,000 Long-term debt 160,000 Cost of goods sold 550,000 Operating expenses 280,000 Common stock 320,000 Cash 90,000 Retained earnings-prior year ?

Retained earnings---eurrent year ?