A sole proprietorship was started on January 1, 2005, when it received \($60,000\) cash from Mark Pruitt, the owner. During 2005, the company earned \($40,000\) in cash revenues and paid \($19,300\) in cash expenses. Pruitt withdrew \($5,000\) cash from the business during 2005.

Required:
Prepare an income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for Pruitt’s 2005 fiscal year.