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Merchandise inventory	$	72,000
Notes payable (long-term)		80,000
Sales		240,000
Buildings and equipment		144,000
Selling, general, and administrative expenses		24,000
Accounts receivable		36,000
Common stock (20,000 shares)		80,000
Income tax expense		19,200
Cash		91,120
Retained earnings, 1/1/16		49,200
Accrued liabilities		4,800
Cost of goods sold		144,000
Accumulated depreciation		64,800
Interest expense		8,000
Accounts payable		24,000
Dividends declared and paid during 2016		4,480

Except as otherwise indicated, assume that all balance sheet items reflect account balances at December 31, 2016, and that all income statement items reflect activities that occurred during the year ended December 31, 2016. There were no changes in paid-in capital during the year.

Required:

a. Prepare an income statement and statement of changes in stockholders equity for the year ended December 31, 2016, and a balance sheet at December 31, 2016, for Shae, Inc. Based on the financial statements that you have prepared for part a, answer the questions in parts be.

*I am not able to figure the 2 assets missing, 1 liability missing as well as 2 under stockholder's equity.

SHAE, INC.
Balance Sheet
December 31, 2016
Assets
Accounts receivable	$36,000
Cash	91,120
Merchandise inventory	72,000
Total current assets		$199,120
Buildings and equipment	144,000
Less: Accumulated depreciation	64,800
Total assets		$199,120
Liabilities
Accounts payable	$24,000
Accrued liabilities	4,800
Notes payable (long term)	80,000
Total liabilities		$108,800
Stockholders Equity
Common stock	$80,000
Retained earnings	89,520
Total stockholders equity		$169,520
Total liabilities and stockholders equity		$278,320

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