Poseidon Company was established on January 1, 2020. Below are the accounts and the balances of Poseidon Company taken from Adjusted Trial Balance as of December 31,2020.

ACCOUNTS	BALANCES ($)	ACCOUNTS	BALANCES ($)
CASH	35,000	SALES REVENUE	160,000
COST OF GOODS SOLD	84,000	ACCOUNTS RECEIVABLE	98,000
ACCOUNTS PAYABLE	35,000	PREPAID RENT	6,000
RENT EXPENSE	16,000	SALARIES EXPENSE	12,000
MERCHANDISE INVENTORY	60,000	INSURANCE EXPENSE	7,000
DEPRECIATION EXPENSE	10,000	PREPAID INSURANCE	2,000
FIXTURES	40,000	ACCRUED SALARIES PAYABLE	1,000
ELECTRICITY EXPENSE	4,000	ACCUMULATED DEPRECIATION	8,000
NOTES PAYABLE	20,000	CAPITAL	150,000

Required:

Prepare the Income Statement of Poseidon Company for the year 2020 and prepare the balance sheet of Poseidon Company as of December 31, 2020.

Write your comments on the financial position and financial performance of the company.