Fuel Designs financial accounts follow The company has just completed
Fuel Designs’ financial accounts follow. The company has just completed its tenth year of operations ended December 31, 2014.
Accounts Payable............ $ 3,600
Accounts Receivable............ 4,500
Cash.................. 71,700
Commission Sales Revenue........ 400,000
Commissions Expense............ 225,000
Commissions Payable............ 22,700
Equipment............. 59,900
Marketing Expense............ 20,100
Office Rent Expense............ 36,000
Owner’s Capital, December 31, 2013.... 64,300
Supplies................ 700
Supplies Expense............ 2,600
Telephone and Computer Expenses...... 5,100
Wages Expense............ 32,000
Withdrawals............. 33,000

Required
1. Prepare Fuel Designs’ income statement, statement of owner’s equity, and balance sheet. There were no investments by the owner during the year.
2. The owner is considering expansion. What other financial statement would be useful to the owner in assessing whether the company’s operations are generating sufficient funds to support the expenses? Why would it be useful?

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