Prepare a balance sheet and income statement for Kronlokken Company from the following scrambled list of items.

a. Prepare a common-sized income statement and a common-sized balance sheet. Interpret your findings.

Transcribed Image Text:

Depreciation expense $66,000 Cash 225,000 Long-term debt 334,000 Sales Accounts payable 573,000 102,000 General and administrative expense 79,000 Buildings and equipment Notes payable 895,000 75,000 Accounts receivable 153,000 Interest expense 4,750 Accrued expenses 7,900 Common stock 289,000 Cost of goods sold 297,000 Inventory 99,300