Preparation and Interpretation of Financial Statemen Bachino's Pizza's accounts follow. The company has just completed its first year of operations ended September $30,2014.$

Accounts Payable: $ $21,000$

Accounts Receivable: $26,400$

Cash $5,200$

Delivery Truck Rent Expense $14,400$

Equipment $12,600$

Equipment Rental Expense $5,800$

Marketing Expense $3,000$

Owner's Capital $4,000*$

Pizza Revenue $164,000$

Salaries Expense $112,000$

Salaries Payable $1,400$

Supplies $800$

Supplies Expense $8,200$

Withdrawals $2,000$

$*$Represents the initial investment by the owner.

$1.$ Prepare Bachino's Pizza's income statement, statement of owner's equity, and bal$-$ ance sheet.

$2.$ Why would Bachino's Pizza's owner set his business up as a sole proprietorship and not a partnership? Discuss how profits and obligations are shared in the two forms of business organizations.