Prepare Financial Statements

Data:

• Revenue: $250,000
• Expenses:
  • Cost of Goods Sold: $100,000
  • Operating Expenses: $80,000

• Assets:
  • Cash: $30,000
  • Inventory: $40,000
  • Equipment: $90,000

• Liabilities:
  • Accounts Payable: $20,000
  • Loan Payable: $60,000

Requirements:

1. Prepare the income statement for the year ended December 31, 2023.
2. Prepare the balance sheet as of December 31, 2023.
3. Discuss the financial health of the company based on these statements.