Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corporation. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability.

BALANCE SHEET

Payables $ $35$ Inventories $ $50$

Less accumulated depreciation $120$ Receivables $35$

Total current assets Total current liabilities

Long$-$term debt $ $350$ Interest expense $ $25$

Property, plant, and equipment $520$ Total liabilities

Net fixed assets Shareholders$$ equity $ $90$

Total assets Total liabilities and shareholders$$ equity

INCOME STATEMENT

Net sales $ $700$

Cost of goods sold $580$

Selling, general, and administrative expenses $38$

EBIT

Debt due for repayment $ $25$

Cash $15$

Taxable income

Federal plus other taxes $ $15$

Depreciation $12$

Net income

Prepare the balance sheet and income statement by rearranging the above items.

Note: Be sure to list the assets and liabilities in order of their liquidity. Enter all amounts as positive values.