Problem 1 (32%) Construct an income statement and a balance sheet from the cash entries below for the ABC company for the years 2015 and 2016 ABC Company 2015 2016 Accounts receivable $675 5638 Less: Accumulated depreciation 1500 1800 Accounts payable 300 Bonds 900 Cash 300 Common shares 450 Contributed capital 900 Costs of goods sold 1750 Depreciation expense 550 Income taxes 200 300 Interest expense 125 150 Inventories 825 938 Net plant and equipment 1800 2100 Net revenue from sales 1250 1500 Operating expenses 75 Plant and equipment 3300 3900 Profit after taxes 300 450 Profit before taxes 500 750 Retained earnings 1050 1200 Sales 3000 3625 Total assets 3600 3900 Total current assets 1800 1800 Total current liabilities 450 Total expenses 750 750 Total liabilities and owners' equity 3600 3900 Total long-term assets 1800 2100 Total long-term liabilities 900 900 Total owners' equity 2400 2550 Working capital loan 225 300 000