Read the given financial data of New York Traders Inc. Determine which accounts belong to the balance sheet and which accounts belong to the income statement. Determine to which subgroup of balance sheet or income statement each account belongs. Compute the correct account balances that should be reported in balance sheet and correct amounts of revenues and expenses that should be reported in income statement. Arrange the accounts in proper order and functionality. Prepare a comprehensive balance sheet in good form. MUST SHOW COMPUTATION Prepare a multi-step income statement in good form. MUST SHOW COMPUTATION Financial Data of New York Traders Inc. as of January 1, 2016 Accounts Payable 200,500 Account Receivable 165,700 Accumulated Depreciations 350,000 Additional Paid-In Capital 40,000 Allowance for Doubtful Accounts 2,650 Building and Equipment 1,120,000 Cash 45,300 Common Stock 544,850 Copyrights 112,000 Customer Deposits (expected to be paid in 2017) 375 Goodwill 225,000 Income Taxes Payable 42,340 Inventories 315,250 Long-term Investments in Warren Co. 95,630 Deposits With Vendors 47,200 Land 125,000 Mortgage Payable ($2,780 per month) 667,200 2% Notes Payable to Banks ( due 2017) 26,000 Notes Receivable (due 2017) 16,000 Patents 219,335 Retained Earnings 127,500 Trademarks 115,000 Twenty-year, 12% Bonds, Due 1/1/2020 600,000 Financial Data of New York Traders Inc. for the Year 2016 1 Finished Goods inventory purchased from suppliers on account. 2/10/2016 10,000 units @ $26 each 6/12/2016 15,000 units @ $28 each 10/23/2016 12,000 units @ $29 each 11/25/2016 8,000 units @ $30 each New York Traders Inc. uses periodic inventory system and LIFO costing method. All purchases and sales are made on account. 2 Payments made to suppliers on account during 2016 are $1,124,450. 3 Sales made to customers on account are 49,356 units @ $36 each 4 Cash collected from customers during 2016 is $1,750,700 5 Total Interest paid on Notes Payable and Bonds Payable amounted to $17,415 6 Rental Income on property leased out $ 25,650 7 New York Traders Inc. was operating a retail store at Chicago. Original cost of building and equipment was $120,000 with a book value of $95,000. During 2016 New York Traders disposed of this store at a loss of $35,800. 8 New York Traders Inc. wants to make an allowance for doubtful debts at 2% on accounts receivable for the year 2016. 9 Selling and Administrative expenses are $128,475. These expenses include $56,000 depreciation expense on Building and Equipment but exclude bad debts expenses. 10 Income Tax Expense paid is $90,500. New York Traders Income Tax Rate for 2016 is 30%.