1. SAW Inc. had the following account balances on 12/31/2020. Prepare the Income Statement for SAW using proper formatting for a merchandising company (multi-step format must be used / See page 266 for example). (8pts)

Cash $12,500 Cost of Goods Sold $120,500

A/R $10,000 Pre-Paid Rent $8,000

Inventory $50,000 Utility Expense $5,500

A/P $8,000 Interest Revenue $7,500

Sales $465,000 Salaries Expense $49,000

Owner Capital $20,000 Owner Withdrawal $5,800

Sales Discount Forfeited $17,500 Rent Expense $8,500