LEARNING EXERCISES PART#1 EXERCISE 2: PREPARING THE STATEMENT OF INCOME At the end of December 31, 2012, Cougar Inc.'s accounts are as follows: Office salaries $30,000 Finance costs 3,000 Depreciation (administration) 2,000 Cost of sales 300,000 Income tax expense 35,000 Sales salaries 40,000 Interest income 6,000 Gross revenue 520,000 Advertising 10,000 Lease (administration) 3,000 Promotional expenses 2,000 Sales discounts 20,000 Travel expenses 3,000 Rental charges 5,000 Question Prepare Cougar Inc.'s statement of income (Income Statement) for the year ended December 31, 2012.PART#2 EXERCISE 5: PREPARING THE STATEMENT OF FINANCIAL POSITION At the end of December 31, 2012, Cougar Inc.'s accounts are as follows: Accumulated depreciation $100,000 Current income taxes payable 5,000 Long-term borrowings 25,000 Inventories 90,000 Trade receivables 60,000 Non-current assets (at cost) 300,000 Trade and other payables 40,000 Mortgage 130,000 Accrued expenses 10,000 Future income taxes payable 5,000 Share capital 100,000 Prepaid expenses 10,000 Intangible assets 20,000 Cash and cash equivalents 25,000 Retained earnings 80,000 Short-term borrowings 10,000 Question Prepare Cougar Inc.'s statement of financial position (Balance Sheet) as at December 31, 2012.