1. From the following information, construct a simple income statement and a bal- ance sheet: Sales Finished goods Long-term debt Raw materials Cash Cost of goods sold Accounts receivable Plant and equipment Interest expense Number of shares outstanding Earnings before taxes Taxes Accounts payable Other current liabilities Other expenses Equity $1,000,000 200,000 300,000 100,000 50,000 600,000 250,000 400,000 80,000 100,000 220,000 100,000 200,000 50,000 100,000 450,000