You are provided with the following information for Ramirez Enterprises, effective as of its April 30, 2014, year-end.

Accounts payable $ 834 Accounts receivable 810 Accumulated depreciation—equipment 670 Cash 1,270 Common stock 900 Cost of goods sold 1,060 Depreciation expense 335 Dividends 325 Equipment 2,420 Income tax expense 165 Income taxes payable 135 Insurance expense 210 Interest expense 400 Inventory 967 Land 3,100 Mortgage payable 3,500 Notes payable 61.

Prepaid insurance $ 60 Retained earnings (beginning) 1,600 Salaries and wages expense 700 Salaries and wages payable 222 Sales revenue 5,100 Stock investments (short-term) 1,200 Instructions

(a) Prepare an income statement and a retained earnings statement for Ramirez Enterprises for the year ended April 30, 2014.

(b) Prepare a classified balance sheet for Ramirez Enterprises as of April 30, 2014.AppendixLO1