Asset, liability, equity, income and expense amounts for Sadoka’s Interior Decorating at 30 June 2016 are presented below:

Required

A. Prepare an income statement for the business for the year ended 30 June 2016.
B. Prepare a balance sheet in narrative format as at 30 June 2016.
C. Explain succinctly the differences in the information conveyed by an income statement and a statement of cash flows.

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Cash at bank Accounts receivable Supplies Equipment Accounts payable Sadoka Nato, Capital Decorating services income $22 800 117 600 26 400 125 600 33 700 ? 386 000 Advertising expense Insurance expense Rent expense Supplies expense Telephone expense Electricity expense Wages expense $36 000 8 000 33 000 12 600 12 200 17 000 111 000