Below are the financial accounts of Dodge Realty. The company has just completed its 10th year of operations ended December 31, 20x8.

Accounts Payable ....................................................... $ 3,600

Accounts Receivable ..................................................... 4,500

Cash ........................................................................ 91,600

Commissions Expense ................................................. 225,000

Commissions Payable .................................................... 22,700

Commission Sales Revenue ........................................... 450,000

Equipment ................................................................ 59,900

Marketing Expense ...................................................... 29,200

Office Rent Expense .................................................... 36,000

Supplies ........................................................................ 700

Supplies Expense ......................................................... 2,600

T. Dodge, Capital, December 31, 20x7 ................................ 50,300

Telephone and Computer Expenses ................................... $ 5,100

Wages Expense ........................................................... 32,000

Withdrawals ................................................................ 40,000

Required

1. Prepare the income statement, statement of owner's equity, and balance sheet for Dodge Realty. There were no investments by the owner during the year.

2. User Insight: The owner is considering expansion. What other statement would be useful to the owner in assessing whether the company's operations are generating sufficient funds to support the expenses? Why would it be useful?