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3. (Review of financial statements) Prepare a balance sheet and income statement for the Terrence Company from the following scrambled list of items: Depreciation expense $66,000 Cash 225,000 Long-term debt 334,000 Sales 573,000 Accounts payable 102,000 General and administrative expense Buildings and equipment Notes payable Accounts receivable 79,000 895,000 75,000 167,500 Interest expense 4,750 Accrued expenses 7,900 Common stock 289,000 Cost of goods sold 297,000 Inventory 99,300 Taxes 50,500 Accumulated depreciation Taxes payable Retained earnings 1. 2. 3. 263,000 53,000 262,900 Prepare an income statement for the Terrence Company. Prepare a balance sheet for the Terrence Company. What can you say about the firm's financial condition based on these financial statements