The following items and amounts were taken from Waterway Industriess 2022 income statement and balance sheet.

Cash		$ 96,558
Retained earnings		140,442
Cost of goods sold		499,839
Salaries and wages expense		131,256
Prepaid insurance		8,906
Inventory		73,658
Accounts receivable		100,791
Sales revenue		666,844
Notes payable		7,409
Accounts payable		56,303
Service revenue		5,477
Interest expense		2,152

(a)

In each case, identify whether the item is an asset, liability, stockholders' equity, revenue, or expense item.

select an item ExpenseLiabilityAssetStockholders' EquityRevenue		Cash
select an item ExpenseRevenueLiabilityStockholders' EquityAsset		Retained earnings
select an item ExpenseRevenueAssetLiabilityStockholders' Equity		Cost of goods sold
select an item AssetStockholders' EquityRevenueLiabilityExpense		Salaries and wages expense
select an item LiabilityStockholders' EquityRevenueExpenseAsset		Prepaid insurance
select an item ExpenseRevenueAssetLiabilityStockholders' Equity		Inventory
select an item AssetExpenseRevenueStockholders' EquityLiability		Accounts receivable
select an item LiabilityRevenueStockholders' EquityExpenseAsset		Sales revenue
select an item AssetExpenseRevenueStockholders' EquityLiability		Notes payable
select an item LiabilityAssetStockholders' EquityRevenueExpense		Accounts payable
select an item RevenueStockholders' EquityLiabilityExpenseAsset		Service revenue
select an item LiabilityExpenseAssetStockholders' EquityRevenue		Interest expense

(b)

Prepare an income statement for Waterway Industries for the year ended December 31, 2022.