The balance sheet items of The Soda Shop (arranged in alphabetical order) were as follows at the close of the business on September 30, 2012:

Accounts Payable..................... $ 8,500 Furniture and Fixtures.............. $20,000

Accounts Receivable................... 1,250 Land......................................... 55,000

Building.................................... 45,500 Notes Payable.................................... ?

Capital Stock............................. 50,000 Retained Earnings....................... 4,090

Cash .......................................... 7,400 Supplies..................................... 3,440

The transactions occurring during the first week of October were:

Oct. 3 Additional capital stock was sold for $50,000. The accounts payable were paid in full.

Oct. 6 More furniture was purchased on account at a cost of $10,000, to be paid within 30 days. Supplies were purchased for $1,000 cash from a restaurant supply center that was going out of business. These supplies would have cost $2,000 if purchased under normal circumstances.

Oct. 1-6 Revenues of $6,000 were earned and paid in cash. Expenses required to earn the revenues of $2,200 were incurred and paid in cash.

Required:

1. Prepare a balance sheet at September 30, 2012.
2. Prepare a balance sheet at October 6, 2012. Also prepare an income statement and a statement of cash flows for the period October 1-6, 2012
3. Assume the note payable does not come due for several years. Is The Soda Shop in a stronger financial position on September 30 or on October 6? Explain briefly.