I have to prepare an income statement and a balance sheet using figures my prof gave us. I know where some of the information should go but don't have a clue about most others. Can you help with this?

7. Based on the financial information below, prepare an income statement and a balance sheet for Joe's-Fly-by-Night Oil company for the year ended December 31, 2012. Unless otherwise indicated, assume all information below is either for the year 2012 or as of December 31, 2012. Accounts receivable......................................... $3,000 Accumulated depreciation................................. $12,000 Cost of goods sold.......................................... $4,000 Income tax expense......................................... $1,000 Cash........................................................... $5,000 Sales........................................................... $10,000 Equipment (gross)........................................... $27,000 Selling, general, & administrative expenses............. $3,000 Common stock (1,000 shares).............................. $7,000 Accounts payable........................................... $17,000 Retained earnings........................................... $13,000 Joe's Fly-by-Night Oil Company For the Period Ending December 31, 2012 ASSETS LIABILITIES & OWNERS' EQUITY Current assets Cash and cash equivalents Current liabilities 5, 000 Short-term investments Accounts receivable Inventories Loans payable and current portion long-term debt Accounts payable and accrued expenses 3, 000 17, 000 Income taxes payable Accrued retirement and profit-sharing contributions Deferred income taxes Prepaid expenses and other current assets Total current assets $ 25,000 Fixed assets Property, plant and equipment at cost Less accumulated depreciation Total fixed assets Total current liabilities Other liabilities 27, 000 12, 000 $ 39,000 Long-term debt Accrued retirement costs Deferred income taxes Deferred credits and other liabilities Other assets Long-term cash investments Equity investments Deferred income taxes Other assets $ $ 64,000 Total other assets Total assets Total other liabilities Total liabilities Total owners' equity 6 Total liabilities + owners' equity Income Statement Joe's Fly-by-Night Oil Company For the year ending December 31, 2012 Financial Statements in U.S. Dollars Revenue 1000 0 Gross Sales Less: Sales Returns and Allowances Net Sales 10000 Cost of Goods Sold Beginning Inventory Add: Inventory Available Less: Ending Inventory Cost of Goods Sold 1700 0 Purchases Freight-in Direct Labor Indirect Expenses 1700 0 4000 Gross Profit (Loss) 6000 Expenses Advertising Amortization Bad Debts Bank Charges Charitable Contributions Commissions Contract Labor Depreciation Dues and Subscriptions Employee Benefit Programs 1200 0 6 Insurance Interest Legal and Professional Fees Licenses and Fees Miscellaneous Office Expense Payroll Taxes Postage Rent Repairs and Maintenance Supplies Telephone Travel Utilities Vehicle Expenses Wages Total Expenses 12000 Net Operating Income (6000) Other Income Gain (Loss) on Sale of Assets Interest Income Total Other Income Net Income (Loss) 3000 3000 (3000) BUSN 5200 Homework Week 2 Question 1 Accounting is the process of identifying, measuring, and communicating economic information about an organization for the purpose of making decisions and informed judgements. Question 2 The work that accountants do is divided into three broad fields: 1. Financial Accounting consists of the process that results in the preparation and reporting of financial statments. The Bookkeeping activity is an important subdivision of financial accounting. Bookkeeping is the process of accumulating the financial results of an entity's activities. 2. Managerial Accounting consists of the use of economic and financial information to plan and control many activities of the entity and to support the management decision-making process. Cost Accounting is a subset of managerial accounting that is involved with the determination and accumulation of product or service costs. 3. Auditing, or Public Accounting is the function in which a firm's financial statements are reviewed or examined by an independent third party (the auditor). Public accounting firms and individual certified Public Accountants (CPAs) provide this auditing service. Question 3 The fundamental accounting equation illustrates the concept that everything a business possesses (ie, its assets) are claimed by someone (ie, creditors or owners). The equation is: Assets = Liabilities + Equity Question 4 The purpose of a balance sheet is to describe the company's status as of a particular time. That is, to list what a company posseses, what it owes, and what claims the owners have as of a particular moment in time. Typical balance sheet accounts include Current Assets (cash, accounts receivable, inventory, etc.), Fixed Assets (property, plant, and equipment, land, etc.), Other Assets (patents, licenses, etc.) ,Current Liabilities (accounts payable, notes payable, etc.), Long-Term Liabilities (longterm loans, bonds, etc.), and Equity accounts (Common stock, additional capital, retained earnings, etc. ). Question 5 The purpose of an income statement is to describe a company's profit and loss during a particular period. It shows how much revenue came into the business vs. how much in expenses left the business during the period in question. Typical income statement accounts include Revenues, Cost of Goods Sold (COGS), Operating Expenses, Depreciation, Operating Profit (also called Earnings before Interest and Taxes, or EBIT), Interest Expense, Before-Tax Income (also called Earnings Before Tax, or EBT), Taxes (State & Local), and Net Income (also called Net Profit After-Tax, or Net After-Tax Earnings). Also shown are Preferred dividends (if any; if not, this account will not be shown), Earnings available to common stockholders (same as net income if there is no preferred), EPS, Dividends, and Addition to Retained Earnings . Question 6 The purpose of a statement of cash flows is to show how much cash flowed in and out of the business during a particular period.. Typical cash flow statement accounts include cash flows from operations (that is, the firm's normal activities), cash flows from investments (that is, long-term expenditures), and cash flows from financing activities (borrowing, issuing stock, paying off debt, and so on). . BUSN 5200 Homework Week 2 Question 7 Joe's Fly-by-Night Oil INCOME STATEMENT, 2012 BALANCE SHEET, as of Dec 31, 2012 Sales Cost of goods sold Gross profit S, G & A expenses EBIT Interest Before-tax earnings Taxes Net income ASSETS Cash Accounts receivable Inventory Current assets Equipment (gross) Less Accum Depreciation Equipment (net) Total assets LIABILITIES AND EQUITY Accounts payable Current liabilities Long-term debt Total liabilities Common stock (1,000 shares) Retained earnings Total equity Total liabilities & Equity EPS Dividends Addition to retained earnings $10,000 4,000 $6,000 3,000 $3,000 $200 $2,800 1,000 $1,800 $1.80 $600 $1,200 $5,000 3,000 17,000 $25,000 27,000 (12,000) $15,000 $40,000 $17,000 $17,000 $3,000 $20,000 $7,000 $13,000 $20,000 $40,000 BUSN 5200 Homework Week 2 Question 7 Joe's Fly-by-Night Oil INCOME STATEMENT, 2012 BALANCE SHEET, as of Dec 31, 2012 Sales $10,000 Cost of goo 4,000 Gross prof $6,000 S, G & A e 3,000 EBIT $3,000 Interest $200 Before-tax $2,800 Taxes 1,000 Net income $1,800 ASSETS Cash $5,000 Accounts re 3,000 Inventory 17,000 Current ass $25,000 Equipment 27,000 Less Accum (12,000) Equipment $15,000 Total asset $40,000 LIABILITIES AND EQUITY Accounts p $17,000 Current liab $17,000 Long-term $3,000 Total liabili $20,000 Common sto $7,000 Retained e $13,000 Total equit $20,000 Total liabil $40,000 EPS Dividends Addition to retained earnings $1.80 $600 $1,200