Blooming Flower Company was started in Year 1 when it acquired $60,000 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 and balance sheet for each fiscal year.

Year 1 Year 2 Year 3 Purchases of inventory Sales Cost of goods sold Selling and administrative expenses $50,000 $60,000 $85,000 68,000 34,000 85,000 43,000 71,000 42,000 29,000 35,000