A. Prepare an income statement (multiple step), balance sheet and cash flow statement using the selected financial statement information and additional data for Stanislaus Co. presented below.

Balance sheet: December 31

2015

Cash.......................................................... $52,000

Accounts receivable (net)........................... 64,000

Inventory.................................................. 178,000

Land.......................................................... 78,800

Equipment................................................. 504,000

TOTAL............................................ $876,800

Accumulated depreciation.......................... $94,000

Accounts payable....................................... 50,400

Notes payable - short-term........................ 67,200

Notes payable - long-term.......................... 178,000

Common stock........................................... 420,000

Retained earnings...................................... 67,200

TOTAL............................................ $876,800

Trial balance

December 31, 2016

................................................................. DR CR

Cash.......................................................... $60,000

Accounts receivable (net)........................... 75,000

Allowance for doubtful accounts..4,500

Inventory.................................................. 148,000

Land.......................................................... 58,800

Equipment................................................. 620,000

Accumulated depreciation.......................... 40,000

Accounts payable....................................... 48,700

Notes payable - short-term........................ 24,200

Notes payable - long-term.......................... 154,000

Common stock........................................... 420,000

Retained earnings...................................... 67,200

Sales revenue............................................ 630,500

Cost of goods sold.285,000

Salary expense.95000

Advertising expense14,600

Depreciation expense.10,000

Bad debt expense.2,500

Other expense.20,000

Additional data for 2016:

1. Land was sold at its original cost.

2. Equipment was purchased

3. Notes were repaid