Assume that you are the president of McClaren Corporation. At the end of the first year (June 30.

2005) of operations, the following financial data for the company are available:

Required (show computations): 1. Prepare a summarized income statement for the year 2005. 2. Prepare a balance sheet at June 30, 2005.

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Cash $13,150 Receivables from customers (all considered collectible) 9,500 Inventory of merchandise (based on physical count and priced at cost) Equipment owned, at cost less used portion 57,000 36,000 Accounts payable owed to suppliers 31,500 Salary payable for 2005 (on June 30, 2005, this was owed to an employee who was away because of an emergency; will return around July 7, 2005, at which time the payment will be made) Total sales revenue 1,500 90.000 Expenses, including the cost of the merchandise sold (excluding income taxes) 60,500 Income taxes expense at 30% X pretax income; all paid during 2005 Contributed capital, 5,000 shares outstanding 62.000 No dividends were declared or paid during 2005.