The following balance sheets and summary of cash receipts and disbursements is available for Watson, Inc. Required: Use the information provided to prepare the Income Statement for the period ended December 31, 2013. Show work.

Question 1- Balance Sheets 112 points The following balance sheets and summary of cash receipts and disbursements is available for Watson, Inc. Watson, Inc. Comparative Balance Sheets 2012 2013 At December 31 Assets: Cash Marketable Securities Inventory Accounts Receivable Interest Receivable Equipment Accumulated Depreciation Total Assets 10,240 16,000 12,000 12,000 100 20,000 (9,000) 61,340 13,960 16,000 9,600 14,000 140 22,000 (11,200) 64,500 Liabilities and Shareholders' Equity: Accounts Payable Salaries Payable Rent Payable Common Stock Retained Earnings Total Liabilities and Shareholders' Equity 6,240 6,400 400 20,000 28,300 61,340 6,000 6,800 200 20,000 31,500 64,500 Following is a summary of cash receipts and disbursements from Watson's records for 2013: Beginning cash balance (1/1/13) $10,240 Add cash receipts: From customers From interest on investments $57,600 1,160 58,760 $69,000 Less cash payments: For accounts payable For salaries For rent For dividends For new equipment $17,840 24,000 7,200 4,000 2,000 55,040 $13,960 Ending cash balance (12/31/13) Required: Use the information provided to prepare the Income Statement for the period ended December 31, 2013