Assume that you are the president of Influence Corporation. At the end of the first year (December 31) of operations, the following financial data for the company are available:

Cash ....................................................................................$ 13,150

Receivables from customers (all considered collectible) ........................ 10,900

Inventory of merchandise (based on physical count and priced at cost) ...... 27,000

Equipment owned, at cost less used portion ...................................... 66,000

Accounts payable owed to suppliers ............................................... 31,500

Salary payable (on December 31. this was owed to an employee

who will be paid on January 10) .................................................... 1,500

Total sales revenue .................................................................... 100,000

Expenses, including the cost of the merchandise sold

(excluding income taxes) ............................................................ 68,500

Income taxes expense at 30% × pretax income; all paid during

December of the current year ....................................................... ?

Common stock at the end of the current year ..................................... 62,000

No dividends were declared or paid during the current year. The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.

Required:

Using the financial statement exhibits in the chapter as models and showing computations:

1. Prepare a summarized income statement for the year.

2. Prepare a statement of stockholders' equity for the year.

3. Prepare a balance sheet at year-end.