Using the following financial information, create an income statement reflecting business activity during the year, and a balance sheet reflecting the firm's end-of-year financial

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Using the following financial information, create an income statement reflecting business activity during the year, and a balance sheet reflecting the firm's end-of-year financial position. Financial Information All values are end-of-year unless otherwise stated Accounts Payable Accounts Receivable Accruals Accumulated Depreciation Beginning-of-year Inventory Beginning-of-year Retained Earnings Cash Common Stock Cost of Goods Sold Current Portion of Long Term Debt Depreciation Expense Dividends Gross Property, Plant, and Equipment Interest Expense Long Term Debt (excluding current portion) Net Sales Operating Expenses (excluding depreciation) Purchases Tax rate 12,000 10,000 10,000 100,000 50,000 120,000 7,000 121,500 200,000 1,500 25,000 40,000 400,000 15,000 120,000 400,000 40,000 250,000 40%