INCOME STATEMENT (IN MILL$): January 1, 2019 December 31, 2019

Revenue = 400; Gross Profit Margin = 30%; Operating Expenses (before depreciation) = 20; Depreciation = 20; Interest = 10; Average Tax Rate =40%; Preferred Dividend = 5; Common Dividend= 7; # of shares outstanding=10 million; Per Share Price of Common Stock = $50.00

BALANCE SHEET (IN MILL$): December 31, 2019

Cash = 5; A/R = 20; Inventory = 55; Net Fixed Asset = 120; Accounts Payable= 10; Accrued Wages =5; Notes Payable = 5; Bonds (@5%) = 80; Preferred Stock = 10;

Common Equity: Common Stock ($1 par) = 10, Paid-in-Capital = 10, Retained Earnings = 70.

Prepare an income statement & a balance sheet based on the information above.