[The following information applies to the questions displayed below.) Assume you are the president of High Power Corporation. At the end of the first year of operations (December 31), the following financial data for the company are available: Accounts Payable Accounts Receivable Cash Common Stock Dividends Equipment Notes Payable Operating Expenses Other Expenses Sales Revenue Supplies $ 33,000 10,900 14,200 59,990 2,040 88,000 1,690 59,300 7,940 93,600 5,900 Required: 1. Prepare an income statement for the year ended December 31. HIGH POWER CORPORATION Income Statement Revenues Sales Revenue $ 93,600 93,600 Total Revenues Expenses Operating Expenses Other Expenses Total Expenses Net Income 59,300 7,940 67,240 Required information [The following information applies to the questions displayed below.] Assume you are the president of High Power Corporation. At the end of the first year of operations (December 31), the following financial data for the company are available: Accounts Payable Accounts Receivable Cash Common Stock Dividends Equipment Notes Payable Operating Expenses Other Expenses Sales Revenue Supplies $ 33,000 10,900 14,200 59,990 2,040 88,000 1,690 59,300 7,940 93,600 5,900 2. Prepare a statement of retained earnings for the year ended December 31. HIGH POWER CORPORATION Statement of Retained Earnings $ 0 Retained Earnings, January 1 Add: Net Income Less: Dividends Retained Earnings, December 31 Accounts Payable Accounts Receivable Cash Common Stock Dividends Equipment Notes Payable Operating Expenses Other Expenses Sales Revenue Supplies $ 33,000 10,900 14,200 59,990 2,040 88,000 1,690 59,300 7,940 93,600 5,900 3. Prepare a balance sheet at December 31. HIGH POWER CORPORATION Balance Sheet Required information (The following information applies to the questions displayed below.) Assume you are the president of High Power Corporation. At the end of the first year of operations (December 31), the following financial data for the company are available: Accounts Payable Accounts Receivable Cash Common Stock Dividends Equipment Notes Payable Operating Expenses Other Expenses Sales Revenue Supplies $ 33,000 10,900 14,200 59,990 2,040 88,000 1,690 59,300 7,940 93,600 5,900 3-a. Was the company profitable? O Yes O No 3-b. Which financial statement provides the information regarding profitability? O Income Statement O Statement of Retained Earnings O Balance Sheet O Statement of Cash Flows