Required information P1-1 (Algo) Preparing an Income Statement, Statement of Stockholders' Equity, and Balance Sheet LO1-1 [The following information applies to the questions displayed below.] Assume that you are the president of Highlight Construction Company. At the end of the first year of operations (December 31), the following financial data for the company are available: Cashi Receivables from customers (all considered collectible) Equipment owned, at cost less used portion Accounts payable owed to suppliers $ 25,400 Inventory of merchandise (based on physical count and priced at cost) 12,700 70,000 42,400 47,940 Salary payable (on December 31, this was owed to an employee who will be paid on January 10) Total sales revenue 3,600 134,000 Expenses, including the cost of the merchandise sold (excluding income taxes) 83,200 Income tax expense at 308 pretax income; all paid during the current year Common stock (December 31) 2 74,000 10,600 Dividends declared and paid during the current year (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) P1-1 Part 2 2. Prepare a statement of stockholders' equity for the year. 2. Prepare a statement of stockholders' equity for the year. Answer is complete but not entirely correct. HIGHLIGHT CONSTRUCTION COMPANY Statement of Stockholders' Equity For the Year Ended December 31, Current Year Common Retained Stock Earnings Balance January 1, Current year $ 0 Stock issuance 74,000 0 Add: Net income 0 15,240 Less: Dividends 0 10,600 Balance December 31, Current year $ 74,000 $ 4,640