Assume that you are the president of Nuclear Company. At December 31, 2014, the end of the first year of operations, the following financial data for the company are available:

Cash .............................. $ 25,000

Receivables from customers (all considered collectible) .........12,000

Inventory of merchandise (based on physical count and priced at cost) ... 90,000

Equipment owned, at cost less used portion ...............45,000

Payables to suppliers of merchandise .................47,370

Salary payable for 2014 (on December 31, 2014, this was owed

to an employee, but the amount was not paid until January 10, 2015) .... 2,000

Total sales revenue ........................ 140,000

Expenses, including the cost of the merchandise sold

(excluding income taxes) ......................89,100

Income taxes expense (at 30% of pretax earnings); all paid during 2014 ... ?

Contributed capital, 7,000 shares outstanding ..............87,000

No dividends were declared or paid during 2014.

Required

1. Prepare a summarized statement of earnings for the year ended December 31, 2014.

2. Prepare a statement of financial position at December 31, 2014.