The following data relate to the Prima Company.

(1) Exhibit 3.10: Balance sheet at December 31, Year 8.

ASSETS

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..$ 10,000

Marketable Securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000

Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000

Merchandise Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000

Prepayments for Miscellaneous Services . . . . . . . . . . . . . . . . 3,000

Total Current Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $ 88,000

Land, Buildings, and Equipment (at cost) . . . . . . . . . . . . . . . $ 40,000

Less Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . (16,000)

Land, Buildings, and Equipment (net) . . . . . . . . . . . . . . . . . . . $ 24,000

Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$112,000

LIABILITIES AND SHAREHOLDERS’ EQUITY

Accounts Payable (for merchandise). . . . . . . . . . . . . . . . . . . . $ 25,000

Interest Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300

Taxes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000

Total Current Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 29,300

Note Payable (6%, long-term). . . . . . . . . . . . . . . . . . . . . . . . . 20,000

Total Liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..$ 49,300

Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... $ 50,000

Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12,700

Total Shareholders’ Equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 62,700

Total Liabilities and Shareholders’ Equity . . . . . . . . . . . . . $112,000

(2) Exhibit 3.11: Statement of net income and retained earnings for Year 8.

Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $200,000

Less Expenses:

Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $130,000

Depreciation Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000

Taxes Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000

Other Operating Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,700

Interest Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200

Total Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$190,900

Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,100

Less Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000

Increase in Retained Earnings . . . . . . . . . . . . . . . . . . . . . . $ 4,100

(3) Exhibit 3.12: Statement of cash receipts and disbursements for Year 8.

Cash Receipts

Cash Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 47,000

Collection from Credit Customers . . . . . . . . . . . . . . . . . . . . . . . 150,000

Total Receipts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $197,000

Cash Disbursements

Payment to Suppliers of Merchandise . . . . . . . . . . . . . . . . . . . . $128,000

Payment to Suppliers of Miscellaneous Services . . . . . . . . . . . 49,000

Payment of Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500

Payment of Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200

Payment of Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000

Purchase of Marketable Securities . . . . . . . . . . . . . . . . . . . . . . . 8,000

Total Disbursements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $198,700

Excess of Disbursements over Receipts . . . . . . . . . . . . . . . $ 1,700

Purchases of merchandise during the period, all on account, were $127,000. All Other Operating Expenses were credited to Prepayments. Prepare a balance sheet for December 31, Year 7.