A sole proprietorship was started on January 1, 2012, when it received $60,000 cash from Mark Pruitt, the owner. During 2012, the company earned $40,000 in cash revenues and paid $19,300 in cash expenses. Pruitt withdrew $5,000 cash from the business during 2012.

Required

Prepare the income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for Pruitt’s 2012 fiscal year.