Prepare the following:

1) a statement of retained earnings and

2) a balance sheets

Prepare the statements using the Excel template attached.

M3-21 Preparing Financial Statements from a Trial Balance The following accounts are taken from Equilibrium Riding, Inc., a company that specializes in occupational therapy and horseback riding lessons, as of December 31. Required: Using the unadjusted trial balance provided, create a classified Balance Sheet, Statement of Retained Earnings, and Income Statement for Equilibrium Riding, Inc., for the year ended December 31. (These financial statements would be considered "preliminary" because they use unadjusted balances.) TIP: Create the income Statement first, followed by the Statement of Retained Earnings, and finally the classified Balance Sheet. Follow the formats presented in Exhibits 1.3, 1.4, and 2.13. M3-22 Preparing an Income Statement and Calculating Net Profit Margin For each of the following items in Old Time Cable, Inc.'s financial statements, indicate (1) whether it is reported in the income statement (I/S) or balance sheet (B/S) and (2) whether it is an asset (A), liability (L), stockholders' equity (SE), revenue (R), or expense (E) account. The first item is given as an example. Old Time Cable also reported $4,340 in operating expenses. Based on the available information, determine the company's net profit margin expressed as a percent (to one decimal place)