Cushing Company was started in 2013 when it acquired $40,000 from the issue of common stock. The following data summarize the company€™s first three years€™ operating activities. Assume that all transactions were cash transactions.

Required
Prepare an income statement (use the multistep format) and balance sheet for each fiscal year.

2013 2014 2015 Purchases of inventory Sales Cost of goods sold Selling and administrative expenses $30,000 42,000 22,000 6,500 $36,000 56,000 39,000 9,100 S57,000 72,000 51,000 11,200