Grouper Company recently hired a new accountant whose first task was to prepare the financial statements for the year ended December 31, 2021. The following is what he produced:

GROUPER COMPANY Income Statement December 31, 2021
Sales								$394,000
Less: Unearned revenue						$5,700
Purchase discounts						3,500		9,200
Total revenue								384,800
Cost of goods sold
Purchases						232,500
Less: Purchase returns and allowances						4,100
Net purchases						236,600
Add: Sales returns and allowances						7,400
Cost of goods available for sale						244,000
Add: Freight out						9,400
Cost of selling merchandise								253,400
Gross profit margin								131,400
Operating expenses
Freight in						4,500
Insurance expense						10,400
Interest expense						2,500
Rent expense						17,900
Salaries expense						42,100
Total operating expenses								77,400
Profit margin								54,000
Other revenues
Interest revenue				$1,600
Investment by owner				3,500		5,100
Other expenses
Depreciation expense				6,100
Drawings by owner				48,500		54,600		(49,500	)
Profit from operations								$4,500

GROUPER COMPANY Balance Sheet Year Ended December 31, 2021
Assets
Cash					$16,500
Accounts receivable					7,800
Merchandise inventory, January 1, 2021					29,600
Merchandise inventory, December 31, 2021					24,500
Equipment			$61,000
Less: loan payable (for equipment purchase)			50,000		11,000
Total assets					$89,400
Liabilities and Owner's Equity
Long-term investment					$50,000
Accumulated depreciationequipment					18,300
Sales discounts					2,900
Total liabilities					71,200
Owners equity					18,200
Total liabilities and owners equity					$89,400

The owner of the company, Lily Oliver, is confused by the statements and has asked you for your help. She doesnt understand how, if her Owners Capital account was $68,400 at December 31, 2020, owners equity is now only $18,200. The accountant tells you that $18,200 must be correct because the balance sheet is balanced. The accountant also tells you that he didnt prepare a statement of owners equity because it is an optional statement. You are relieved to find out that, even though there are errors in the statements, the amounts used from the accounts in the general ledger are the correct amounts.

Prepare the correct multiple-step income statement, Balance Sheet, Statement of Owner's Equity.