Blake Weaver, Cook Enterprises’ controller, is preparing the financial statements for 2020. He has completed the comparative balance sheets and income statement, which follow, and has gathered this additional information:

• On December 31, 2020, Cook sold a piece of equipment with an original cost of $25,000 for $30,000 cash. The equipment had a book value of $13,000.
• On February 1, 2020, Cook issued $100,000 of common stock to raise cash in anticipation of the purchase of a new building later in the year.
• On February 2,2020, Cook took out a ten-year $75,000 long-term loan to provide the remaining funds needed to purchase the building.
• On May 15, 2020, Cook paid $150,000 for the new building.
• The company repaid $4,600 of the long-term debt before the end of the year.

Required:

Using the direct method, prepare Cook Enterprises' statement of each follows for 2020.

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Cook Enterprises Income Statement For the Year Ended December 31, 2020 $1,070,000 17,000 Sales revenue Gain on equipment sale Total revenue 1,087,000 Cost of goods sold Operating expenses Depreciation expense 700,000 $ 30,000 Interest expense 12,400 Wages expenses Other expenses 170,000 16,000 228,400 Income before taxes 158,600 Tax expense 63,400 Net income $ 95,200 Cook Enterprises Comparative Balance Sheets As of December 31 2020 2019 $ 40,400 269,800 Cash $124,200 Accounts receivable, net 295,200 Inventory 105,000 95,000 Total current assets 524,400 405,200