Prepare a balance sheet and income statement for the Warner Company from the following scrambled list of items:

Depreciation expense...............$ 66,000

Cash .................... 225,000

Long-term debt .................. 334,000

Sales .................... 573,000

Accounts payable ............... 102,000

General and administrative expense ........ 79,000

Buildings and equipment ............ 895,000

Notes payable ................. 75,000

Accounts receivable .............. 167,500

Interest expense ................. 4,750

Accrued expenses ............... 7,900

Common stock ................ 289,000

Cost of goods sold ................ 297,000

Inventory ................... 99,300

Taxes .................... 50,500

Accumulated depreciation ............. 263,000

Taxes payable ................. 53,000

Retained earnings ................. 262,900

a. Prepare an income statement for the Warner Company.

b. Prepare a balance sheet for the Warner Company.

c. What can you say about the firm’s financial condition based on these financial statements?