PLEASE ANSWER THE FOLLOWING QUESTIONS Using this information and also considering that there is no taxation and no decision for dividends distribution, you are required to: a. Prepare the income statement for the company DigitCNC, using a multi-step format with four measures of profitability: gross profit, operating income, pretax income and net income. b. Calculate the Current periods retained earnings. c. Prepare the balance sheet, considering the groups: current assets, noncurrent assets, current liabilities, long-term liabilities, stockholders equity.

The following information is provided for the company DigitCNC' (figures are in ): Common stock ? Land improvements 5,000 Interest expense 10,000 Short-term loans payable 20,000 Plant & Equipment 15,000 Vehicles 20,000 Purchases 450,000 Sales 740,000 Land 20,000 Accounts receivables - net 20,000 Sales discounts 20,000 Opening inventory 120,000 Long-term debt 70,000 Creditors 35,000 Buildings 30,000 Closing inventory 70,000 Cash and cash equivalents 30,000 Beginning Retained earnings 0 Accrued compensation and 10,000 Selling, general and 170,000 benefits administrative expenses