2. (Income statement) If the Mayfield Steel Fabrication Company earned $500,000 in net income and paid a cash dividend of $300,000 to its stockholders, what are the firm's earnings per share if the firm has 100,000 shares of stock outstanding?

3. (Review of financial statements) Prepare a balance sheet and income statement for the Terrence Company from the following scrambled list of items:

Depreciation expense $66,000

Cash 225,000

Long-term debt 334,000

Sales 573,000

Accounts payable 102,000

General and administrative expense 79,000

Buildings and equipment895,000

Notes payable75,000

Accounts receivable167,500

Interest expense 4,750

Accrued expenses7,900

Common stock 289,000

Cost of goods sold297,000

Inventory99,300

Taxes50,500

Accumulated depreciation 263,000

Taxes payable 53,000

Retained earnings262,900

Inventory$6,500

1.Prepare an income statement for the Terrence Company.

2.Prepare a balance sheet for the Terrence Company.

3.What can you say about the firm's financial condition based on these financial statements?