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

a. Prepare a common-sized income statement and a common-sized balance sheet. Interpret your findings.

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 ...................................     153,000

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

Prepaid expenses ...................................         14,500

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

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