Use the following information to prepare a multistep income statement and a classified balance sheet for Vernon Company for 2013.

Operating expenses ..............$45,000

Land ................... 75,000

Accumulated depreciation ............ 46,000

Accounts payable .............. 35,000

Unearned revenue .............. 27,000

Warranties payable (short term) ......... 4,500

Equipment .................. 96,000

Notes payable (long term) ............140,000

Salvage value of equipment .......... 10,000

Dividends ................. 15,000

Warranty expense .............. 7,200

Beginning retained earnings .......... 41,100

Interest revenue ................ 4,200

Gain on sale of equipment ............ 7,000

Inventory ..................126,000

Notes receivable (short term)........... 12,500

Cash ...................$46,000

Interest receivable (short term) .......... 1,500

Cash flow from investing activities ....... (96,000)

Allowance for doubtful accounts ........ 14,000

Interest payable (short term) .......... 6,000

Sales revenue .................900,000

Uncollectible accounts expense ......... 25,000

Interest expense ................ 16,000

Accounts receivable ............. 88,000

Salaries payable ............... 48,000

Supplies .................. 4,500

Prepaid rent ................ 18,000

Common stock ................ 90,000

Cost of goods sold ..............575,000

Salaries expense ..............102,000

Building .................110,000