The accounts of Real Deal, Inc., follow. The company completed its 10th year of operations on December 31, 2011.

REQUIRED

1. Prepare the income statement, statement of retained earnings, and balance sheet for Real Deal.

2. The owners of Real Deal are considering expansion. What other statement would be useful to the owners in assessing whether the company€™s operations are generating sufficient funds to support the expenses? Why would it be useful?

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$13,000 20,100 36,000 Accounts Payable Accounts Receivable Cash Commission Sales Revenue Commissions Expense Commissions Payable Common Stock Dividends Equipment Income Taxes Expense s 3,600 Income Taxes Payable 4,500 Marketing Expense 57,700 400,000 225,000 Office Rent Expense Retained Earnings, December 31, 2010 35,300 700 22,700 Supplies 29,000 Telephone and 33,000 59,900Utilities Expense 27,000 Wages Expense Computer Expenses 5,100 2,600 32,000 3