Required:

Using the trial balance, plus any additional information provided, prepare the following statements;

1. Classified balance sheet as of December 31, 2019

2. Multiple-step income statement for the year ended December 31, 2019

3. Statement of shareholders' equity for the year ended December 31, 2019

4. Statement of cash flows for the year ended December 31, 2019( using the indirect method)

Build A Better Mouse, Inc. Adjusted Trial Balance December 31, 2019 Debit Credit 206,445 $ $ 190,700 66,500 567,450 285,000 14,303 30,000 59,379 92,460 126,600 42,000 1,837,950 5,006 8,821 84,500 2,900 12,660 65,786 11,971 C Accounts payable CAVAccounts receivable Accumulated depreciation SEVAdditional paid-in capital Advertising expense Allowance for bad debts Amortization of patent Bad debt expense Clash StrCommon stock AVComputer equipment Cost of goods sold AlDeferred income taxes A Deferred income taxes Depreciation expense --Dividend income Dividends -Income tax expense Income taxes payable Insurance expense Unterest expense Winterest payable Anventory Carinvestments toss on disposal of equipment Manufacturing equipment Miscellaneous expense Notes payable Office furnishings VPatent SAPrepaid insurance Rent expense S Retained earnings (January 1) Sales Supplies Supplies expense vtility expense Wage expense Wages payable 66,660 14,667 14,667 274,080 70,000 8,000 437,000 16,369 200,000 100,000 120,000 6,060 170,000 0 3,830,900 7,140 26,995 101,320 945,000 18,175 $5,068,731 $5,068,731 Mr. Newcastle patented his design and found a group of investors willing to corporation, Build a Better Mouse, Inc. (BABMI), and begin production or und a group of investors willing to help him form a The corporation was officially formed on January 2, 2019, with authorization to 135 shares of common stock. Mr. Newcastle contributed the patent to the corporation exchange received 30,000 shares of the company's $1 par value stock. On that sa pany s $1 par value stock. On that same date, other investors paid $298,000 for 59,600 shares of stock. Three months later, on April 1, 2017 another 37.000 shares of stock were issued for $246.050 To secure additional funds, the oompany borrowed $200,000 from Huntingdonshire Bank on February 1. The bank is charging 8 percent interest, and the company will make 5 equal payments of $50,091 starting on February 1, 2020. BABMI purchased its own manufacturing equipment, computer equipment, and office furnishings, spending a total of $669,000 (including the following 12/29/19 replacement machine). However, one of the machines was not operating satisfactorily, and it was sold on December 29 for $64,000. It had originally cost $90,000 and $18,000 of depreciation expense had been taken in 2019. A replacement machine was purchased on December 29 for $115,000. The company depreciates its equipment differently for tax purposes than for book purposes, resulting in deferred income taxes of $8,821. In addition, deferred taxes of $5,006 resulted from differences in accounting for bad debts. BABMI expects its 2019 tax liability to be $61,971. Of this amount, $50,000 had been paid by December 31. The mouse received favorable reviews in various technology and consumer publications. These good reviews, plus an effective marketing campaign, have helped the company achieve strong sales in its first year of operations. By year-end, the company had sufficient cash on hand to purchase some shares in Chipotle and Johnson & Johnson. Management expects to dispose of the shares sometime next year, when they hope to expand their operations. Also, due to the company's early success, the board of directors decided to pay a dividend of $.10 per share. Shown on page 4 is an adjusted trial balance for the Build a Better Mouse, Inc. for the year ended December 31, 2019, with accounts arranged in alphabetical order. Closing entries have not been made yet, so retained earnings has a zero balance. Build A Better Mouse, Inc. Adjusted Trial Balance December 31, 2019 Debit Credit 206,445 $ $ 190,700 66,500 567,450 285,000 14,303 30,000 59,379 92,460 126,600 42,000 1,837,950 5,006 8,821 84,500 2,900 12,660 65,786 11,971 C Accounts payable CAVAccounts receivable Accumulated depreciation SEVAdditional paid-in capital Advertising expense Allowance for bad debts Amortization of patent Bad debt expense Clash StrCommon stock AVComputer equipment Cost of goods sold AlDeferred income taxes A Deferred income taxes Depreciation expense --Dividend income Dividends -Income tax expense Income taxes payable Insurance expense Unterest expense Winterest payable Anventory Carinvestments toss on disposal of equipment Manufacturing equipment Miscellaneous expense Notes payable Office furnishings VPatent SAPrepaid insurance Rent expense S Retained earnings (January 1) Sales Supplies Supplies expense vtility expense Wage expense Wages payable 66,660 14,667 14,667 274,080 70,000 8,000 437,000 16,369 200,000 100,000 120,000 6,060 170,000 0 3,830,900 7,140 26,995 101,320 945,000 18,175 $5,068,731 $5,068,731 Mr. Newcastle patented his design and found a group of investors willing to corporation, Build a Better Mouse, Inc. (BABMI), and begin production or und a group of investors willing to help him form a The corporation was officially formed on January 2, 2019, with authorization to 135 shares of common stock. Mr. Newcastle contributed the patent to the corporation exchange received 30,000 shares of the company's $1 par value stock. On that sa pany s $1 par value stock. On that same date, other investors paid $298,000 for 59,600 shares of stock. Three months later, on April 1, 2017 another 37.000 shares of stock were issued for $246.050 To secure additional funds, the oompany borrowed $200,000 from Huntingdonshire Bank on February 1. The bank is charging 8 percent interest, and the company will make 5 equal payments of $50,091 starting on February 1, 2020. BABMI purchased its own manufacturing equipment, computer equipment, and office furnishings, spending a total of $669,000 (including the following 12/29/19 replacement machine). However, one of the machines was not operating satisfactorily, and it was sold on December 29 for $64,000. It had originally cost $90,000 and $18,000 of depreciation expense had been taken in 2019. A replacement machine was purchased on December 29 for $115,000. The company depreciates its equipment differently for tax purposes than for book purposes, resulting in deferred income taxes of $8,821. In addition, deferred taxes of $5,006 resulted from differences in accounting for bad debts. BABMI expects its 2019 tax liability to be $61,971. Of this amount, $50,000 had been paid by December 31. The mouse received favorable reviews in various technology and consumer publications. These good reviews, plus an effective marketing campaign, have helped the company achieve strong sales in its first year of operations. By year-end, the company had sufficient cash on hand to purchase some shares in Chipotle and Johnson & Johnson. Management expects to dispose of the shares sometime next year, when they hope to expand their operations. Also, due to the company's early success, the board of directors decided to pay a dividend of $.10 per share. Shown on page 4 is an adjusted trial balance for the Build a Better Mouse, Inc. for the year ended December 31, 2019, with accounts arranged in alphabetical order. Closing entries have not been made yet, so retained earnings has a zero balance