1) Cash flow statement 2) Balance sheet 3) activity ratios and liquidity

Paulson Corporation's unadjusted trial balance at December 1, 2012, is presented Debit Credit Cash Accounts Receivable Notes Receivable Interest Receivable Inventory Prepaid Insurance Land Darila Buildings Equipment Patent Allama Allowance for Doubtful Accounts 500 Accumulated Depreciation Buildings 50,000 24,000 Accumulated Depreciation-Equipment Accumu Accounts Payable 27,300 Colatio Salaries and Wages Payable Safar -0- Notes Payable (due April 30, 2013) aptos 11,000 -0- Interest Payable Notes Payable (due in 2018) Notes 35,000 Common Stock 50,000 Retained Earnings 63,600 Dividends Calam Sales Revenue 900,000 Interest Revenue Gain on Disposal of Plant Assets Bad Debts Expense -0 Cost of Goods Sold 630,000 Depreciation Expense Insurance Expense -0- Interest Expense -0- Other Operating Expenses 61,800 Amortization Expense -0- Salaries and Wages Expense 110,000 Total $1,161,400 $1,161,400 The following transactions occurred during December. Dec. 2 Paulson purchased equipment for $16,000, plus sales taxes of $800 (all paid in cash). 2 Paulson sold for $3,500 equipment which originally cost $5,000. Accumulated depreciation on this equipment at January 1, 2012, was $1,800; 2012 depreciation prior to the sale of equipment was $450. 15 Paulson sold for $5,000 on account inventory that cost $3,500. 23 Salaries and wages of $6,600 were paid. Adjustment data: 1. Paulson estimates that uncollectible accounts receivable at year-end are $4,000. 2. The note receivable is a one-year, 8% note dated April 1, 2012. No interest has been recorded. 3. The balance in prepaid insurance represents payment of a $3,600, 6-month premium on September 1, 2012. 4. The building is being depreciated using the straight-line method over 30 years. The salvage value is $30,000. 5. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost. 6. The equipment purchased on December 2, 2012, is being depreciated using the straight-line method over 5 years, with a salvage value of $1,800. 7. The patent was acquired on January 1, 2012, and has a useful life of 9 years from that date. 8. Unpaid salaries at December 31, 2012, total $2,200. 9. Both the short-term and long-term notes payable are dated January 1, 2012, and carry a 10% interest rate. All interest is payable in the next 12 months. 10. Income tax expense was $15,000. It was unpaid at December 31. 4. On the base of above data, you are required to prepare Cash flow statement (10 points) 5. On the base of the above data, you are required to prepare: a) Balance sheet (6 points) b) Calculate the activity ratios and liquidity (4 points) $ 22,000 36,800 10,000 -0- 36,200 3,600 20,000 150,000 60,000 9,000 12,000 $