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. BALANCE SHEET Payables 45 Inventories 60 Less accumulated depreciation 130 Receivables 85 Total current assets Total current liabilities Long-term debt 400 Interest expense 35 Property, plant, and equipment 570 Total liabilities Net fixed assets Shareholders' equity 130 Total assets Total liabilities and shareholders' equity 800 630 48 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 35 25 25 22 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 (Click to select) (Click to select) (Click to select) BALANCE SHEET Liabilities and Shareholders' Equity (Click to select) (Click to select) $ Total current liabilities (Click to select) Total current assets $ S (Click to select) (Click to select) Total liabilities (Click to select) Net fixed assets Total assets Total liabilities and shareholders' equity INCOME STATEMENT $ (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) $ (Click to select) (Click to select) (Click to select) $