The following three independent sets of financial statements have several amounts missing:

Required
1. Complete each set of financial statements by determining the missing amounts that correspond to the letters.
2. Why is it necessary to prepare the income statement prior to the balancesheet?

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Income Statement Revenues Set A $1,100 Set B Set C S (g) 240 5 80 340 5,200 Net income Statement of Owner's Equity Beginning balance Net income Less withdrawals Ending balance Balance Sheet Total assets Total liabilities Owner's capital Total liabilities and owner's equity $24,400 1,600 $2,900 200 3,000 $31,000 S 5,000 $1,600 380 S 380