a) Gray Corporation began operations on January 1, 2025. The following information is available for Gray on December 31, 2025.

b) Prepare an income statement, a retained earnings statement, and a balance sheet for Gray Corporation. Indicate whether each of the following items is most closely associated with the management discussion and analysis (MD&A), the notes to the financial statements, or the auditor's report.

a. Description of ability to pay near-term obligations.

b. Unqualified opinion.

c. Details concerning liabilities, too voluminous to be included in the statements.

d. Description of favorable and unfavorable trends.

e. Certified public accountant (CPA).

f. Descriptions of significant accounting policies.

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Accounts payable Accounts receivable Advertising expense Cash Common stock Dividends Equipment $ 5,000 2,000 4,000 3,100 15,000 2,500 26,800 Notes payable Rent expense Retained earnings Service revenue Supplies Supplies expense $7,000 10,000 ? 25,000 1,900 1,700