Ariana Corporation includes two coupons in each box of cereal box and 9 coupons are redeemed for a child’s toy dog. In 2013, Ariana Corporation purchased 4700 toy dogs at $1.05 each and sold 108,000 boxes of cereal at $4.25 per box. In total, 36,000 coupons were presented for redemption in 2013. It is estimated that 50% of the coupons will eventually be redeemed.

Required:

a) What would appear on the balance sheet as a result of the above?

b) What would appear on the Income Statement as a result of the above?