Mountain Sports, Inc., is a retailer that has engaged you to assist in the preparation of its finan cial statements at December 31, 2018. Following are the correct adjusted account balances, in alphabetical order, as of that date. Each balance is the "normal" balance for that account. (Hint: The "normal" balance is the same as the debit or credit side that increases the account.) Accumulated depreciation: office equipment. Additional paid-in capital (common stock). Bonds payable (due December 31, 2021). Common stock (1.800 shares, $10 par value).. Depreciation expense: office equipment Accounts payable Accounts receivable $ Cash... Cost of goods sold Deferred income taxes. Dividends declared. Income tax expense Insurance expense. Land. Merchandise inventory.. Notes payable (due December 31, 2019) Office equipment Office supplies. Office supplies expense. Preferred stock (250 shares, $20 par value) Premium on bonds payable.. Prepaid rent. Rent expense.. Retained earnings (January 2018). Salaries expense. 12,750 2,600 12.000 13,000 22,500 19,200 18,000 100,575 5,750 2.750 5,000 8,190 900 39,500 17,500 2,500 41,000 900 520 5,000 1,750 1,800 6,100 21,050 88,095 226,000 2,500 3,200 2.250 4,120 Sales ... Sales returns and allowances. Sales taxes payable Treasury stock (200 common shares at cost). Utilities expense Instructions these guidelines: a. Prepare an income statement for the year ended December 31, 2018, which includes amounts for gross profit, income before income taxes, and net income. List expenses (other than cost of goods sold and income tax expense) in order, from the largest to the smallest dollar balance. You may ignore earnings per share. b. Prepare a statement of retained earnings for the year ending December 31, 2018. C Prepare a statement of financial position (balance sheet) as of December 31, 2018, following Include separate asset and liability categories for those items that are current." Include and label amounts for total assets, total liabilities, total stockholders' equity, and total liabilities and stockholders' equity. Present deferred income taxes as a noncurrent liability. To the extent information is available that should be disclosed, include the parenthetical disclosure of that information