The adjusted trial balance of Cook Antique Auctioneers at the end of its year, December 31, 2017, is shown below:

Required
1. Prepare Cook Antique Auctioneers' 2017 income statement, statement of owner's equity, and balance sheet. List expenses in decreasing-balance order on the income statement and show total liabilities on the balance sheet. If your three financial statements appear on one page, draw the arrows linking the three financial statements. If they are on separate pages, write a short paragraph describing how the three financial statements are linked. How will what you have learned in this problem help you manage a business?
2. a. Which financial statement reports Cook's results of operations? Were 2017 operations successful? Cite specifics from the financial statements to support your evaluation.
b. Which statement reports the company's financial position? Does Cook's financial position look strong or weak? Give the reason for your evaluation.

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COOK ANTIQUE AUCTIONEERS Adjusted Trial Balance December 31,2017 $ 9,400 166,000 8,000 4,200 468,420 Cash Accounts receivable Prepaid rent Supplies Equipment Accumulated amortization-equipment Office furniture Accumulated amortization-office furniture Accounts payable Unearned service revenue Interest payable Salaries payable Notes pavable A. Cook, capital A. Cook, withdrawals Service revenue Amortization expense-equipment Amortization expense-offi Salaries expense Rent expense Interest expense Utilities expense Insurance expense Supplies expense Total $ 72,000 96,000 38,400 56,000 8,000 1,100 4,200 220,000 129,520 92,000 780,000 36,000 9,600 320,000 48,000 13,200 21,600 13,200 3,600 ce furniture $1,309,220 $1,309,220