Ramsey Company was started in 2007 when it acquired \($30,000\) from the issue of common stock. The following data summarize the company’s first three years’ operating activities. Assume that all trans¬ actions were cash transactions.

Required:

Prepare an income statement (use the multistep format) and balance sheet for each fiscal year.

Transcribed Image Text:

2007 2008 2009 Purchases of Inventory $24,000 $12,000 $18,500 Sales 26,000 32,000 36,000 Cost of Goods Sold 15,200 18,500 20,000 Selling and Administrative Expenses 5,500 9,400 10,100