The following trial balance was drawn from the records of Havel Company as of October 1, year 2.

Cash	$	16,000
Accounts receivable		60,000
Inventory		40,000
Store equipment		200,000
Accumulated depreciation					$	76,800
Accounts payable						72,000
Line of credit loan						100,000
Common stock						50,000
Retained earnings						17,200
Totals	$	316,000			$	316,000

b. Supply the missing information in the following pro forma income statement and balance sheet for the fourth quarter of year 2. The statements are prepared as of December 31, year 2.

Income statement:

Sales revenue
Cost of goods sold
Gross Margin	357,480
Operating expenses
Operating income	193,290
Interest Expense	(2,530)
Net Income	$190,760