In alphabetical order below are balance sheet items for Karol Company at December $31,2025.$In each case, identify whether the item would appear on the balance sheet or income statement.

a$.$ Income tax expense

b$.$ Inventory

c$.$ Accounts payable

d$.$ Retained earnings

e$.$ Equipment

f$.$ Sales revenue

g$.$ Cost of goods sold

h$.$ Common stock

i$.$ Accounts receivable

j$.$ Interest expense

Prepare a balance sheet. $($List assets in order of liquidity.$)$

KAROL COMPANY

Balance Sheet

For the Month Ended December $31,2025$

Assets