1. The following items, listed in alphabetical order, are taken from the records of Grizzly Inc., a chain of outdoor recreational stores in the Northwest. Use the items to prepare two statements. First, prepare an income statement for the year ended December 31, 2016. The income statement should be in multiple-step form. Second, prepare a classified balance sheet at December 31, 2016. All amounts are in thousands of dollars.

Accounts payable	$ 6,500		Income tax expense	$ 9,000
Accounts receivable	8,200		Insurance expense	2,000
Accumulated depreciationbuildings	35,000		Interest expense	10,000
Accumulated depreciationfurniture and fixtures	15,000		Interest payable	1,000
Advertising expense	3,100		Interest revenue	12,000
Buildings	76,000		Land	104,000
Capital stock, $1 par, 10,000 shares issued and outstanding			Long-term notes payable, due December 31, 2024	110,000
	20,000		Merchandise inventories	7,000
Cash	2,400		Office supplies	900
Commissions expense	8,600		Paid-in capital in excess of par value	40,000
Cost of goods sold	105,000		Prepaid rent	1,000
Depreciation on buildings	2,500		Rent expense for salespeople's autos	9,000
Depreciation on furniture and fixtures	1,200		Retained earnings	28,800
Furniture and fixtures	58,000		Salaries and wages for office staff	11,000
Income taxes payable	1,200		Sales revenue	170,000