Pronghorn Company recently hired a new accountant whose first task was to prepare the financial state noromhor 21 onA Thofnllnusinn ievikat ho nudumad. Cost of selling merchandise Gross profit margin 133,400252,400 Operating expenses Freight in Insurance expense Interest expense Rent expense Salaries expense Total operating expenses Profit margin 55,60077,800 Other revenues Interest revenue Investment by owner $1,4003,6005,000 Other expenses Depreciation expense 6,700 Drawings by owner Profit from operations $5,90054,70048,000 PRONGHORN COMPANY Balance Sheet Year Ended December 31, 2024 Assets Cash $16,500 Accounts receivable 7.800 Merchandise inventory, January 1, 2024 29.800 Merchandise inventory, December 31,2024 23,600 Equipment Less: loan payable (for equipment purchase) Total assets Liabilities and Owner's Equity Long-term investment $51,000 The owner of the company, Lily Martin, is confused by the statements and has asked you for your help. She doesn't understand how, If her Owner's Capital account was $71,500 at December 31,2023, owner's equity is now only $19,600. The accountant tells you that $19,600 must be correct because the balance sheet is balanced. The accountant also tells you that he didn't prepare a statement of owner's equity because it is an optional statement. You are relieved to find out that, even though there are errors in the statements, the amounts used from the accounts in the general ledger are the correct amounts. Pronghorn Company uses the periodic inventory system with the earnings approach. Prepare the correct multiple-step income statement. (Enter negative omounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) PRONGHORN COMPANY Income Statement : *: $ = * ; ^ A * * PRONGHORN COMPANY Statement of Owner's Equity = $ : *