Apple Inc. was formed in the current year with a $25 contribution from its owners. During the year, it sold $395 of merchandise of which it has collected $385 to date. The company paid $300 for the merchandise of which $35 was still on hand at the end of the year. The company also bought equipment of $30 in exchange for a Note Payable. The equipment has a 6-year estimated useful life. The company paid $32 in salaries. The company incurred and paid $1 of interest on the Note Payable for the year. It also paid on the first day of business $12 for rent for the next two years. Banks is subject to a 21% federal income tax rate on its pre-tax book income.

Prepare an Income Statement & Balance Sheet at the end of the first year of operations for Apple, Inc.