Use the following information to prepare a multistep income statement and a classified balance sheet for Brown Company for Year 1.

Operating expenses .....................................................................................$ 45,000 

Cash ................................................................................................................$ 46,000
Land .................................................................................................................75,000 

Interest receivable (short term) ...................................................................1,600
Accumulated depreciation ............................................................................46,000 

Cash flow from investing activities ..............................................................(96,000)
Accounts payable ............................................................................................35,000 

Allowance for doubtful accounts .................................................................14,000
Unearned revenue .........................................................................................27,000 

Interest payable (short term) .........................................................................6,000
Warranties payable (short term) ....................................................................4,500 

Sales revenue ....................................................................................................900,000
Equipment ..........................................................................................................96,000

Uncollectible accounts expense .......................................................................25,000
Notes payable (long term) .................................................................................140,000 

Interest expense ..................................................................................................16,000
Salvage value of equipment ...............................................................................10,000 

Accounts receivable .............................................................................................88,000
Dividends ..............................................................................................................15,000 

Salaries payable ....................................................................................................48,000
Warranty expense .................................................................................................7,200 

Supplies ..................................................................................................................4,500
Beginning retained earnings ................................................................................41,100 

Prepaid rent ............................................................................................................18,000
Interest revenue ......................................................................................................4,200 

Common stock ........................................................................................................90,000
Gain on sale of equipment .....................................................................................7,000 

Cost of goods sold ....................................................................................................575,000
Inventory ...................................................................................................................126,000 

Salaries expense .......................................................................................................102,000
Notes receivable (short term) .................................................................................12,500 

Building .......................................................................................................................110,000