Balance Sheet Data:

• Assets:
  • Cash: $90,000
  • Accounts Receivable: $60,000
  • Equipment: $150,000

• Liabilities:
  • Accounts Payable: $50,000
  • Notes Payable: $70,000

• Equity:
  • Retained Earnings: $180,000

Income Statement Data:

• Revenue: $300,000
• Expenses:
  • Salaries: $100,000
  • Rent: $40,000
  • Utilities: $10,000

Requirements:

1. Prepare the balance sheet as of December 31, 2023.
2. Prepare the income statement for the year ended December 31, 2023.

Analyze the company’s profitability and financial position based on these statements