Problem 2-1: Preparing Financial Statements

Information below is for Buraydah Manufacturing, Inc. for the year ended December 31, 20x1 except where beginning of year numbers indicated. All amounts in SAR unless otherwise stated.
Accumulated depreciation	2,817,000
Sales	5,826,000
Accounts receivable	233,000
Interest expense	237,000
Cost of goods sold	2,672,000
Short term notes payable	195,000
Income taxes	366,600
Inventories	967,000
Common stock	428,000
Dividends paid	120,000
Cash	986,500
Marketing, general and administrative expenses	1,678,500
Long term debt	5,844,000
Fixed assets (property & equipment)	7,218,000
Accounts payable	395,000
Other assets	862,000
Depreciation expense	422,000
Retained earnings at beginning of year	419,600
Number of shares of common stock	1,000
Using the information above:
1. Prepare an income statement in good form
2. Prepare end of year balance sheet in good form
3. Calculate net working capital
4. Calculate the debt ratio
Using an additional column for each financial statement:
5. Prepare a common sized income statement
6. Prepare a common sized balance sheet