FINANCIAL STATEMENTS The Income Statement and Balance Sheet columns of Endo Company's work sheet are shown on the next page.

Additional information needed to prepare the financial statements is as follows:

Materials inventory, January 1 .........$ 3,760

Work in process inventory, January 1 .......5,315

Finished goods inventory, January 1 .......16,225

Materials purchases .............135,340

Direct labor ................75,000

Actual factory overhead ...........92,000

Indirect materials charged to production ......5,300

REQUIRED

1. Prepare an income statement and a schedule of cost of goods manufactured for the year ended December 31, 20--.

2. Prepare a retained earnings statement for the year ended December 31, 20--.

3. Prepare a balance sheet as of December 31,20--.

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0 00 00 21 0 00 00 22 2 25 00 23 21 Capital Stodk 40 22 Paid-In Capital in Excess of Par 15 23 Retained Earnings 80 0 00 00 24 Cash Dividends 25 24 25 Sales 397 110 00 325 00 25 26 Interest Revenue 27 Factory Overhead 26 27 28 28 292 500 00 44 200 00 1 200 00 24 50 00 1500 00 2550 00 14 4 50 00 29 Cost of Goods Sold 29 30 Wages Expense 31 Office Supplies Expense 32 Bad Debt Expense 30 31 32 33 Utilities Expense-Office 34 Interest Expense 33 34 Income Tax Expense 35 35 358 8 5 0 00 397 4 3 5 00 292 1 8 5 00 253 6 0 0 00 36 36 37 Net Income 38 5 8 5 00 38 5 85 00 37 397 4 3 5 00 397 4 3 5 00 292 1 8 5 00 292 18 5 00 38 38 39 39 40 40