The objective is to test student skills in using the given financial data to prepare a comprehensive balance sheet and multi-step income statement in good form _ The given financial data will be comprised of all the various subgroupings that are reported in a multi-step income statement and balance sheet (operating revenues and expenses, other revenues and expenses and irregular items, current assets, investment, fixed assets, intangibles, current liabilities, long-term liabilities, and the equity sections). Guideline: a) Read the given financial data of New York Traders Inc. b) Determine which accounts belong to the balance sheet and which accounts belong to the income statement. c) Determine to which subgroup of balance sheet or income statement each account belongs. d) Compute the correct account balances that should be reported in balance sheet and correct amounts of revenues and expenses that should be reported in income statement. e) Arrange the accounts in proper order and functionality. f) Prepare a comprehensive balance sheet in good form. g) Prepare a multi-step income statement in good form. h) Submit the Course Project in Week 7. 1. Finished Goods inventory purchased from suppliers on account. 2/10/2016 10,000 units @ $26 each 6/12/2016 15,000 units @ $28 each 10/23/2016 12,000 units @ $29 each 11/25/2016 8,000 units @ $30 each New York Traders Inc. uses periodic inventory system and LIFO costing method. All purchases and sales are made on account 2. Payments made to suppliers on account during 2016 are $1,124,450 3. Sales made to customers on account are 49,356 units @ $36 each 5. Total Interest paid on Notes Payable and Bonds Payable amounted to $17,415 4. Cash collected from customers during 2016 is $1,750,700 6. Rental Income on property leased out $ 25,650 7. New York Traders Inc. was operating a retail store at Chicago. Original cost of building and equipment was $120,000 with a book value of $95,000. During 2016 New York Traders disposed of this store at a loss of $35,800 8. New York Traders Inc. wants to make an allowance for doubtful debts at 2% on accounts receivable for the year 2016 9. Selling and Administrative expenses are $128,475. These expenses include $6,000 depreciation expense on Building and Equipment but exclude bad debts expenses. Financial Data of New York Traders lnc (January 1, 2016) Accounts Payable Accounts Receivable Accumulated Depreciation Additional Paid-ln Capital Allowance for Doubtful Accounts Building and Equipment Cash Common Stock Copyrights Customer Deposits (expected to be paid 2017 Goodwill Income Taxes Payable Inventories Long-term Investments in Warren Co Deposits with Vendors Land Mortgage Payabe ($2,780 per month) 2% Notes Payable to Banks (due 2017) Notes Receivable (due 2017) Patents Retained Earnings Trademarks Twenty-year, 12% Bonds, due 1/1/2020 $ 200 50000 165,700.00 $ 35000000 40,000.00 2,650.00 45,300.00 $ 544 85000 112,000.00 375.00 $ 225 00000 42,340.00 315,250.00 95,630.00 47,200.00 $ 125 00000 $ 667 20000 26,000.00 16,000.00 219,335.00 127,500.00 115,000.00 $ 60000000 Units 12,610.00 per Unit $ 25.00