EXERCISES ON THE INCOME STATEMENT AND BALANCE SHEET RELATIONSHIP Exercise 1 MASON'S INCORPORATED (in 000s of dollars) Inventory, March 31, 2019 $758 Gross income (profit) 857 Long-term notes payable 31 Store fixtures, net 144 Selling expenses 341 Accounts payable 288 Income tax expense 12 Retained earnings, April 1, 2018 540 Cash 48 General and administrative expenses 432 Accrued expenses payable 96 Accounts receivable 324 Dividends 12 Notes payable 252 Inventory, April 1, 2018 684 Common stock 36 3.398 Depreciation expense 36 Income tax payable 7 Store fixtures, cost 180 Assignment Different balance sheet and income statement accounts are listed above in random order. The balance sheet accounts are as at March 31, 2019, except where noted. The income statement amounts are for the year April 1, 2018, to March 31, 2019. 1. Determine whether cach account is a balance sheet or an income statement item 2. Prepare an income statement for Mason's Incorporated for the year ending March 31, 2019. 3. Prepare a statement of retained earnings for the year ended March 31, 2019. 4. Prepare a balance sheet as at March 31, 2019, for Mason's Incorporated. Sales