1. Using the data presented below for Blue Sky Inc.:

	2017	2016
Sales	$7,550,000	$6,150,000
Cost of Goods	5,750,000	4,550,000
Depreciation	120,000	100,000
Selling and G&A Expenses	820,000	730,000
Fixed Expenses	200,000	200,000
Lease Expense	150,000	150,000
Interest Expense	350,000	300,000
Tax Rate	40.00%	40.00%
Shares Outstanding	100,000	80,000
Cash	108,000	50,000
Marketable Securities	150,000	100,000
Accounts Receivable	450,000	350,000
Inventory	1,250,000	850,000
Prepaid Expenses	120,000	40,000
Plant & Equipment	5,350,000	4,800,000
Accumulated Depreciation	410,000	290,000
Long Term Investments	450,000	360,000
Accounts Payable	420,000	380,000
Notes Payable	150,000	100,000
Accrued Expenses	150,000	100,000
Other Current Liabilities	200,000	180,000
Long-term Debt	2,900,000	2,500,000
Common Stock	2,500,000	2,000,000
Additional Paid-in-Capital	600,000	500,000
Retained Earnings	548,000	500,000

Create Blue Skys income statement and balance sheet using formulas wherever possible. Each statement should be on a separate worksheet. Improve the readability of the data by using the format explained on page 49, so that Excel will display the numbers as if they had been divided by 1,000. Make the appropriate note on the heading of each financial statement. Create a common-size income statement and balance sheet for 2017 and 2016. These statements should be created on a separate worksheet with all formulas linked directly to the income statement and balance sheet.