Preparation and Interpretation of Financial Statement P4. The accounts of Frequent Ad, an agency that develops marketing materials for print, radio, and television, follow. The agency's first year of operations just ended on January 31, 2014 Accounts Payable $ 19,400 Accounts Receivable 24,600 Advertising Service Revenue 159,200 A. Francis, Capital 5,000 Cash 1,800 Equipment Rental Expense 37,200 Marketing Expense 4,500 Office Rent Expense 10,800 Salarles Expense 86,000 Salaries Payable 1,300 Supplies 900 Supplies Expense 19,100 Withdrawals 0 *Represents the initial investment by the owner REQUIRED 1. Prepare Frequent Ad's income statement, statement of owner's equity, and balanca sheet 2. BUSINESS APPLICATION Review the financial statements and comment on the financial challenges Frequent Ad faces