Singleton Company was started in Year 1 when it acquired $94,000 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.

Prepare an income statement (use the multistep format) and balance sheet for each fiscal year.

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Year 1 Year 3 Year 2 Purchases of inventory $45,000 $57,000 76,000 $71,000 118,000 Sales Cost of goods sold Selling and administrative expenses 63,000 39,000 78,000 41,000 26,000 22,000 36,000