114 PART 1 The Scope and Environment of Financial Management 3-7. (Working with an income statement and balance sheet) Prepare a balance sheet and income statement for Kronlokken Company from the following scrambled list of items. a. Prepare a common-sized income statement and a common-sized balance sheet. Interpret your findings. Depreciation expense Cash Long-term debt Sales Accounts payable General and administrative expense Buildings and equipment Notes payable Accounts receivable Interest expense Accrued expenses Common stock Cost of goods sold Inventory Taxes Accumulated depreciation Prepaid expenses Taxes payable Retained earnings $66,000 225,000 334,000 573,000 102,000 79.000 895,000 75,000 153,000 4.750 -7.900 289,000 297,000 99,300 50,500 263,000 14,500 53,000 262,900