December January

Cash 23,500.00 18,200.00

Accounts Receivable 34,000.00 46,000.00
Merchandise Inventoy 30,000.00 35,000.00
Prepaid Operating Expenses 8,400.00 5,600.00
Furniture and Fixtures 57,000.00 57,000.00
Less: Allowance for Depreciation 11,400.00 45,600.00 14,400.00 42,600.00
Total Assets 141,500.00 147,400.00

Liabilities and Capital

Accounts Payable 18,600.00 16,700.00
Notes Payable (Non-Trade) 40,000.00 50,000.00
Accrued Operating Expenses 2,100.00 1,800.00
Accrued Interest Expenses 800.00 100.00
Felino Martin, Capital 80,000.00 78,800.00
Total Liabilites and Capital 141,500.00 147,400.00

Sales 84,500.00
Cost of Goods Sold
Merchandise Inventory, Beg. 30,000.00
Purchases 45,200.00
Cost of Goods Available For Sales 75,200.00
Merchandise Inventory, End - 35,000.00 40,200.00
Gross Profit 44,300.00
Less: Operating Expenses
Depreciation Expense 3,000.00
Doubtful Accounts 400.00
Interest Expense 1,000.00
Operating Expense 21,100.00 25,500.00
Net Income (Loss) 18,800.00

Felino Martin, Capital Beg. 80,000.00

Add: Net Income 18,800.00
Less: Withdrawals - 20,000.00
Felino Martin, Capital End 78,800.00