Page 40 R sources Cash PERFORMANCE CORPORATION December 31, 2015 Merchandise inventory (leld for resale) Service vehicles Retained eamings (profit earned in 2015) Grand total Dts Payables to suppliers Note owed to bank Due from customers Total Supplies on hand (to used in rendering services) Accumulated depreciation* (on service vehicks) Common stock, 6500 shares Total Grand total $15,000 12.000 65 ooo $ 32,000 42.000 32,250 $156.250 $ 17,750 25.000 13,000 $ 55.750 92.000 $147.750 *This represents the port iez ofthe service vehicles thcu has been used to date. Required: I. List all deficiencies that you can identify in these statements. Give a brief explanation of each one. 2. Prepare a proper income statement (correct net income is $32,250 and income tax expense is S 10,750) and balance sheet (correct total assets are $140,000).