Answer:
Operating Income = $53,000
Net Income = $39,000
Ending balance of common stock = $300,000
Ending balance of retained earnings = $95,000
Ending total stockholders' equity = $395,000
Total current assets = $198,000
Net long-term assets = $265,000
Total long-term assets = $285,000
Total assets = $463,000
Total liabilities = 68,000
Explanation:
a. Multi-step Income Statement
Multi-step Income Statement put each revenues and expenditures items into different categories to show gross profit and net income. This can be prepared as follows:
Multi-step Income Statement
For the year ended
<u>Details                                                        $        </u>
Sales Revenue                                     545,000 
Sales Discount                                   <u>  (45,000)  </u>
Net Sales Revenue                             500,000  
Cost of Goods Sold                          <u>  (400,000) </u>
Gross profit                                          100,000
Operating expenses:
Rent Expense                                       (12,000) 
Depreciation Expense                         (10,000)
Salaries Expenses                             <u>   (25,000)  </u>
Operating Income                                53,000
Non-operating expenses:
Interest Expense                                 <u>  (6,000) </u>
Income before tax                                 47,000
Income Tax Expense                          <u>   (8,000) </u>
Net income                                            39,000
Dividend paid                                      <u>  (4,000)  </u>
Retained earning for the year          <u>   35,000 </u>
b. Changes in Retained Earnings
<u>Details                                                          $           </u>
Beginning retained earnings                60,000
Retained earning for the year            <u>   35,000 </u>
Ending retained earnings                  <u>  95,000 </u>
c. Movement in Common Stock                 
<u>Details                                                                  $           </u>
Beginning balance of common stock         250,000
Additional shares issued                            <u>    50,000 </u>
Ending balance of common stock          <u>   300,000 </u>
c. Statement of stockholders' equity 
<u>Details                                                                  $           </u>
Beginning balance of common stock         250,000
Additional shares issued                            <u>    50,000 </u>
Ending balance of common stock               300,000 
Ending retained earnings                           <u>    95,000  </u>
Ending total stockholders' equity            <u>  395,000  </u>
d. Classified Balance Sheet
Classified balance sheet shows each of the componets of assets, liabilities and equity. This can be prepared as follows:
Classified Balance Sheet
As at the year ended
<u>Details                                                      $                     $           </u>
<u>Long-Term Assets</u>
Buildings                                           65,000 
Equipment                                   <u>   220,000  </u> 
Total Long-Term Assets                285,000
Accumulated Depreciation      <u>       20,000 </u>
Net Long-Term Assets                                                265,000
<u>Current Assets</u>
Cash                                                  12,000
Accounts Receivable                     150,000
Supplies                                        <u>   36,000 </u> 
Total Current Assets                                                 <u>   198,000 </u>
Total Assets                                                              <u>    463,000 </u>
<u>Financed by:</u>
Ending total stockholders' equity                               395,000
<u>Current Liability</u>
Accounts Payable                           28,000 
<u>Long-Term Liability</u>
Notes Payable (Due in 2years)     <u>  40,000</u>
Total Liabilities                                                           <u>    68,000  </u>
Total Equity $ Liabilities                                          <u>   463,000  </u>
Conclusion
As both the Total Assets and Total Equity and Liabilities are each equal to $463,000, it implies the financial statement is accurately prepared since both must always be equal.