The following post-closing trial balance was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 2:

Cash	$	6,920
Accounts receivable		18,120
Allowance for doubtful accounts		1,880
Inventory		23,460
Accounts payable		7,495
Common stock		19,200
Retained earnings		19,925

Transactions for Year 3

1. Acquired an additional $11,400 cash from the issue of common stock.
2. Purchased $60,500 of inventory on account.
3. Sold inventory that cost $60,500 for $93,400. Sales were made on account.
4. The company wrote off $1,260 of uncollectible accounts.
5. On September 1, LGS loaned $10,500 to Eden Co. The note had an 9 percent interest rate and a one-year term.
6. Paid $14,140 cash for operating expenses.
7. The company collected $78,540 cash from accounts receivable.
8. A cash payment of $53,160 was paid on accounts payable.
9. The company paid a $4,600 cash dividend to the stockholders.
10. Uncollectible accounts are estimated to be 2 percent of sales on account.
11. Recorded the accrued interest at December 31, Year 3 (see item 5).

1. Prepare an income statement, a statement of changes in stockholders equity, a balance sheet, and a statement of cash flows for Year 3.

a) Prepare an income statement for Year 3. (Enter all final answers in whole dollars.)

LITTLE GROCERY SUPPLIER (LGS)
Income Statement
For the Year Ended December 31, Year 3
Expenses
Total expenses
Operating income

b) Prepare a statement of changes in stockholders equity for Year 3. (Enter all final answers in whole dollars. Enter deductibles with a minus sign.)

LITTLE GROCERY SUPPLIER (LGS)
Statement of Changes in Stockholders Equity
For the Year Ended December 31, Year 3
Beginning common stock
Ending common stock
Beginning retained earnings
Ending retained earnings
Total stockholders equity

c) Prepare a balance sheet for Year 3. (Be sure to list the assets in the order of their liquidity. Enter all final answers in whole dollars.)

LITTLE GROCERY SUPPLIER (LGS)
Balance Sheet
As of December 31, Year 3
Assets
Total assets
Liabilities
Total liabilities
Stockholders equity
Total stockholders equity
Total liabilities and stockholders equity

d) Prepare a statement of cash flows for Year 3. (Amounts to be deducted should be indicated with a minus sign. Enter all final answers in whole dollars. Enter cash outflows with a minus sign.)

LITTLE GROCERY SUPPLIER (LGS)
Statement of Cash Flows
For the Year Ended December 31, Year 3
Cash flows from operating activities
Net cash flow from operating activities
Cash flows from investing activities:
Cash flows from financing activities
Net cash flows from financing activities
Net change in cash
Ending cash balance

Thank you!!