1. Designate where each item in the financial statement should be properly reported. Your choices are balance sheet (BS), income statement (IS), statement of cash flow (CF) or no statement (N).

2. Prepare a proper income statement for Midtown Cycles for the fiscal year ending June 30, 2018.

Midtown Cycles provided you with the following self-prepared financial statement for the year ending une 30,2018. The statement was prepared by Chris Zoom, the proprietor, in hopes of obtaining a bank loan to expand into a new line of fat bikes. Mihown Cyces, Inc Francial Statement For the year ending June 30, 20 18 Personal savings Merchandise invetory Shop equipment My intial investment in the shop Total resources 334,250 4,788 Due from customers Net resources Resource Iaflows Sales of 295,212 Cash collected froen custoners Start-up loan from father 700,000 Resource Outflows of merchandise sold (200,750) (10,000) (39,000) paid to Sales clerk's S(483, Income from repair services My salary Parts and supplies for Income taxes (50,000) Total