Problem 3-8 Financial Statements Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp. 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 68 125 Payables Less accumulated depreciation Total current assets Long-term debt Property, plant, and equipment Net fixed assets Total assets BALANCE SHEET 53 Inventories 138 Receivables Total current liabilities 440 Interest expense 610 Total liabilities Shareholders' equity Total liabilities and shareholders' equity 43 162 880 670 56 INCOME STATEMENT Net sales Cost of goods sold Selling, general, and administrative expenses EBIT Debt due for repayment Cash Taxable income Taxes Depreciation Net income 43 33 33 30 Prepare the balance sheet and income statement by rearranging the above items. (Be sure to list the assets and liabilities in order of their liquidity. Enter all amounts as positive values.) Assets Cash Receivables Inventories BALANCE SHEET Liabilities and Shareholders' Equity 33 Payables 125 Debt due for repayment 68 Total current liabilities 226 Long-term debt 53 43 96 Total current assets 440 S Property, plant, and equipment Less accumulated depreciation 610 138 Total liabilities Shareholders' equity 536 Net fixed assets 472 Total assets 698 Total liabilities and shareholders' equity 698 INCOME STATEMENT Net sales Cost of goods sold Selling general, and administrative expenses EBIT 880 670 56 126 Interest expense Taxable income 43 83 $ Taxes Depreciation 33 30 Net income 20