Use the data in Short Exercise 5-10 to prepare Carolina Communications' classified balance sheet at January 31, 2007. Use the report form with all headings, and list accounts in proper order.

Exercise 5-10

Carolina Communications reported these figures in its financial statements:

Prepare Carolina's multi-step income statement for the year ended fanuary 31,2007. 

Transcribed Image Text:

Cash........ Total operating expenses. $ 3,800 3,500 Accounts payable............ 4,000 Owner capital...... 4,200 Long-term notes payable..... 900 Inventory 400 Cost of goods sold 20,000 Equipment, net.. 3,700 Accrued liabilities........ 1,600 Net sales revenue. 25,000 Accounts receivable............. 2,800