Thomas Sales Company (organized as a corporation on April 1, 2009) has completed the accounting cycle for the second year, ended March 31, 2011. Thomas also has completed a correct trial balance as follows:

Required:
Complete the financial statements, as follows:
a. Classified (multiple-step) income statement for the reporting year ended March 31, 2011. Include income tax expense, assuming a 25 percent tax rate. Use the following subtotals: Gross Profit, Total Operating Expenses, Income from Operations, Income before Income Taxes, and Net Income, and show EPS.
b. Classified balance sheet at the end of the reporting year, March 31, 2011. Include (1) income taxes for the current year in Income Taxes Payable and (2) dividends in Retained Earnings. Use the following captions (list each item under these captions).
Assets
Current assets
Noncurrent assets
Liabilities
Current liabilities
Long-term liabilities
Stockholders€™ Equity
Contributed capital
Retainedearnings

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THOMAS SALES COMPANY Trial Balance At March 31, 2011 Account Titles Debit Credit 58.000 49.000 1,000 33,000 Cash Accounts receivable Office supplies inventory Automobiles (company cars) Accumulated depreciation, automobiles Office equipment Accumulated depreciation, office equipment Accounts payable Income taxes payable Salaries and commissions payabl Note payable, long term Capital stock (par S1:33.000 shares) Paid-in capital Retained earnings (on April 1,2010) Dividends declared and paid during the current year Sales revenue Cost of goods sold Operating expenses (detail omitted to conserve your time) Depreciation expense (on autos and including $500 on 11,000 3.000 1,000 22,000 0 2,000 33,000 33,000 5,000 7,500 8,500 99,000 33.000 19,000 office equipment) Interest expense Income tax expense (not yet computed) Totals 6,000 3,000 $213.500 $213.500