PHOTOS GIVEN: Prepare financial statements for the year ended December 31, 2019 for Caudill Corporation. Specifically, you are to prepare the following:

• Classified Balance Sheet as of December 31, 2019
• Multiple-step Income Statement for the year ended December 31, 2019
• Statement of Retained Earnings for the year ended December 31, 2019
• Statement of Cash Flows (indirect method) for the year ended December 31, 2019

Additional information:

• The purchase of land was financed with the notes payable (no cash outlay).
• No property or equipment was sold during the year.
• All purchases of equipment were made in cash.
• All accounts payable relate to inventory purchases
• The notes payable are all long-term liabilities.
• The increase in common stock and paid in capital is due to issuance of new shares for cash.

Caudill Corpoation Adjusted Trial Balance December 31, 2019 Credits $ Debits 458,700 199,250 248,600 13,000 1,250,000 1,500,000 Ooo Cash Accounts Receivable Inventories Prepaid Insurance Land Property and equipment Accumulated Depreciation Accounts Payable Interest Payable Income Taxes Payable Notes Payable Common Stock Additional Paid-in-Capital Retained Earnings, Jan. 1 Dividends Sales Cost of Goods sold Sales salaries Office salaries Depreciation Expense - office Rent expense - sales store Utilities - office Miscellaneous-office Advertising expense Interest expense Income tax expense 205,000 85,700 10,500 22,000 1,000,000 710,000 990,000 586,350 - 0 1,000,000 40,000 - 0 480,000 100,000 120,000 25,000 25,000 50,000 20,000 25,000 25,000 30,000 4,609,550 $ 4,609,550 Caudill Corporation Balance Sheet December 31, 2018 Assets Cash Accounts receivable Inventories Prepaid insurance Land Building and equipment Less: Accumulated depreciation Total assets 471,450 171,500 278,800 11,000 250,000 1,300,000 (180,000) 2,302,750 $ $ 93,400 15,000 8,000 Liabilities Accounts payable Interest payable Income taxes payable Stockholders' equity Common stock Paid in capital in excess of par Retained earnings Total liabilities and equity 700,000 900,000 586,350 2,302,750 $