1. The following trial balance was drawn from the recordsof James Company as of October1, year 2.

Cash	$	26,000
Accounts receivable		80,000
Inventory		50,000
Store equipment		400,000
Accumulated depreciation			$	80,800
Accounts payable				82,000
Line of creditloan				300,000
Common stock				70,000
Retained earnings				23,200
Totals	$	556,000	$	556,000

1. Supply the missing information in the following pro forma incomestatement for the fourth quarter of year 2. The statements are prepared as of December 31, year 2. (Amounts to be deducted shouldbe indicated by a minus sign. Round your answersto the nearest whole dollar.)

Income Statement
Sales revenue	?
Cost of goods sold	?
Gross margin	920,920
Operating expenses	?
Operating income	703,310
Interest expense	(3,530)
Net income	$699,780

1.e Supply the missing information in the following pro forma balancesheet for the fourth quarter of year 2. The statement is prepared as of December 31, year 2. (Amounts to be

deducted shouldbe indicated by a minus sign. Round your answersto the nearest whole dollar.)

Balance Sheet
Assets
Cash		$10,760
Accounts receivable		?
Inventory		?
Store equipment	$400,000
Accumulated depreciation store equipment	?	?
Book value of storeequipment		312,300
Total assets		$754,484
Liabilities
Accounts payable		?
Utilities payable		?
Sales commissions payable		?
Line of credit		(84,461)
Equity
Common stock		70,000
Retained earnings		?
Total liabilities and equity		$754,484