You are provided with the following information for Milner Corporation, effective as of its April 30, 2010,

Question:

You are provided with the following information for Milner effective as of its April 30, 2010, year-end.
Accounts payable ......... $ 2,400
Accounts receivable ........ 9,150
Accumulated depreciation ........ 6,600
Depreciation expense ......... 2,200
Cash .............. 21,955
Common stock .......... 20,000
Dividends ............ 2,800
Equipment ............ 25,050
Sales revenue ........... 21,450
Income tax expense .......... 1,100
Income taxes payable ......... 300
Interest expense .......... 350
Interest payable .......... 175
Long-term notes payable ....... 5,700
Prepaid rent ............ 380
Rent expense ........... 760
Retained earnings, beginning ...... 13,960
Salaries expense ........... 6,840

Instructions
(a) Prepare an income statement and a retained earnings statement for Milner for the year ended April 30, 2010.
(b) Prepare a classified for Milner as of April 30, 2010.
(c) Explain how each financial statement interrelates with the others.

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