PROBLEM E

AlphaZeta Inc. is a brand new firm formed on January 1, 2018 (this detail is important). The following are correct ending balances on all accounts for the firm as of December 31, 2018 (for temporary accounts youre seeing the balances before the closing entries since the true ending balances are zero, but assume that the closing accounts were indeed done correctly). The accounts are shown in alphabetical order.

Accounts Payable	10	Inventory	30
Accounts Receivable	25	Note Payable-due in 6 months	55
Cash	?	Operating Expenses	50
Common Stock	80	Prepaid Assets	15
Cost of Goods Sold	45	PP&E, net	45
Depreciation Expense	10	Retained Earnings	20
Dividends	4	Revenues	?
Interest Expense	5	Tax Expense	6

1. Prepare the Income Statement for the year 2018 (if any needed amounts are represented by ? you should be able to calculate them) Dont worry about any subtotals: show all Revenues and Expenses in the appropriate order as well as the Net Income.

2. Prepare the Balance Sheet for the end of year 2018 (if any needed amounts are represented by ? you should be able to calculate them)

Dont worry about any subtotals except Total Assets, Total Liabilities and Total Equity