Problem $3-8$ FInanclal Statements $($LO$1)$

Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corporation. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability.

$\backslash$table$[[$BALANCE SHEET$],[$Payables$,$$$52,$Inventories,$567],[$Less accumulated depreciation,$137,$Receivables,$120],[$Total current assets,,Total current liabilities,$],[$Long$-$term debt,$$435,$Interest expense,$$42],[$Property$,$ plant, and equipment,$605,$Total liabilities,$],[$Net fixed assets,,Shareholders $^(3)$ equity,$ $158],[$Total assets,,Total liabilities and shar,$]]$

$\backslash$table$[[$INCOME STATEMENT$],[$Net sales,$$870],[$Cost of goods sold,$665],[\backslash$table$[[$selling$,$ general, and administrative expenses$],[$EBIT$]],55],[$Debt due for repayment,$$42],[$Cash$,32],[$Taxable income,$],[$Federal plus other taxes,$$32],[$Depreciation$,29],[$Net income,$]]$

Prepare the balance sheet and income statement by rearranging the above items.

Note: Be sure to llst the assets and llablities In order of thelr llquidlty. Enter all amounts as positive values.