Presented below are

(a) the assets and liabilities of Starmate Talent Search as of December 31, and

(b) the revenues and expenses of the company for the year ended on that date. The items are listed in alphabetical order. Accounts payable. Accounts receivable Advertising expense. Building... Cash... , Insurance expense... Land.. Note payable. Property tax expense Rent expense $ 19.000 12,000 13,000 . 170,000 14,000 Salary expense. 20,000 Salary payable 2,000. Service revenue 9,000. Supplies... $ 60,000 85,000 4,000* 23.000 63.000 Equipment.. Interest expense. 1,000. 178.000. 3,000 The owner's beginning balance, Brian Sartor, Capital, was $150,000, and during the year Sartor withdrew $40.000 for personal use. Required 1. Prepare Starmate's income statement for the year ended December 31 of the current year. 2. Prepare the company's statement of owner's equity for the year ended December 31. 3. Prepare the company's balance sheet at December 31. 4. Answer these questions about the company:

a. Was the result of operations for the year a profit or a loss? How much?

b. Did Sartor drain off all the earnings for the year, or did he build the company's capital during the period? How will his actions affect the company's ability to borrow in the future?

c. How much in total economic resources does the company have as it moves into the new year? How much does the company owe? What is the dollar amount of Sartor's equity interest in the business at the end of the year?