5. Using the information provided below, prepare: a. the Income Statement (10p) b. the balance sheet of the company (10p). Financial Data for AB Co Inc. December 31,2x01 Inventory $206,250 Long-term debt 300,000 Interest expense 5,000 Accumulated depreciation 442,500 Cash 180,000 Net sales (all credit) 1,500,000 Common stock 800,000 Accounts receivable 225.000 Operating expenses 525,000 Notes payable current 187,500 Cost of goods sold 937.500 Plant and equipment 1,312,500 Accounts payable 168,750 Marketable securities 95,000 Prepaid insurance 80,000 Accrued wages 65,000 Retained earnings-current-year 135,000 Federal income taxes 5,750