3-6 (Working with an income statement and balance sheet) Prepare a balance sheet and income statement for Lieberman Inc. from the following information, Inventory Common stock Cash Operating expenses short-term notes payable Interest expense Depreciation expense Net sales Accounts receivable Accounts payable Long-term debt Cost of goods sold $6.500 45,000 16.500 1.350 1600 900 500 12.000 9,000 4,000 50,000 Buildings and equipment Accumulated depreciation 700 122,000 $4,000 TARS 1440 General and administrative expense 850 Retained earnings General and administrative expense 1,440 800 ained earnings Lieberman Inc. Balance Sheet ASSETS Cash $ 16,550 Accounts receivable 9,600 Inventory 6,500 Total current assets $32,650 Buildings and equipment 122,000 Accumulated Depreciation (34,000) Net buildings and equipment $88,000 Total assets $120.650 LIABILITIES AND EQUITY Liabilities Notes payable Accounts payable Total current liabilities $ 600 4.800 $5,400 Long-term debt Total liabilities 55.000 $ 60,400 Equity Common stock Retained earnings Total equity $45,000 15,250 $60,250 $120.650 Total liabilities and equity *Retained earnings is the amount that makes total assets equal debt plus equity. Here, $120,650 -$60,400+$45,000+ $15,250. Income Statement $12,800 Sales Cost of goods sold (5,750) $7,050 Gross profits General & admin expense ($ 850) Depreciation expense (500) English (United States) Total operating expense Operating income (EBIT) Interest expense Earnings before taxes Taxes Net income ($1,350) $5,700 (900) $4,800 (1.440) $3.360 Focus