Cushing Company was started in 2013 when it acquired $40,000 from the issue of common stock. The following data summarize the company€™s first three years€™ operating activities. Assume that all transactions were cash transactions.

Required
Prepare an income statement (use the multistep format) and balance sheet for each fiscal year.

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2013 2014 2015 Purchases of inventory Sales Cost of goods sold Selling and administrative expenses $30,000 42,000 22,000 6,500 $36,000 56,000 39,000 9,100 S57,000 72,000 51,000 11,200