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Instructions (a) Calculate net income and the ending balance of retained earnings at December 31, 2018. It is not necessary to prepare a formal income statement or statement of changes in equity (b) Prepare a statement of financial position. Assume that $30,500 of the mortgage payable will be paid in 2019. a al po... atios uidity,.. Prepare financial statements (LO 1) rk for tion o... E2-5 These financial statement items are for Batra Corporation at year end, July 31, 2018: Operating expenses Salaries expense $ 32,500 Interest payable Supplies expense $ 1,000 44,700 900 Unearned revenue 12,000 Dividends declared 12,000 Utilities expense 2,600 Depreciation expense 3,000 Equipment Retained earnings, August 1, 2017 62,900 17,940 10,800 Rent expense Accounts payable 4,220 5,000 113,600 Income tax expense Service revenue 1,500 18,500 Supplies Rent revenue Held for trading investments 20,000 Common shares 25,000 21,800 Bank loan payable (due December 31, 2018) 5.060 Cash 2,000 17,100 Interest expense Accounts receivable 6,000 Accumulated depreciation-equipment Additional information: Batra started the year with $15,000 of common shares and issued additional shares for $10,000 during the year Instructions Prepare an income statement, statement of changes in equity, and statement of financial position for the year Calculate ratios and evaluate liquidity. (LO 2) Ea-6 The chief financial offficer (CFO) of Padilla Corporation requested that the accounting department prepare a preliminary statement of

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