Proforma Balance Sheet and Income Statement of Atlantic Seaboard Company

 On December 31, 19A the Atlantic Seaboard Company with outstanding capital stock of $30,000 had the following assets and liabilities:
 

Cash                                      $ 5,000
Accounts Receivable               10,000
Materials                                   4,000
Work in Process                        2,000
Finished Goods                         6,000
Prepaid Expenses                         500
Fixed Assets (net)                    30,000
Current Liabilities                      17,500

During the year 19B the retained earnings account increased 50% as a result of the year's business. No dividends were paid during the year. Balances of accounts receivable, prepaid expenses, current liabilities, and capital stock were the same on December 31, 19B as they had been on December 31, 19A. Inventories were reduced by exactly 50%, except for the finished goods inventory which was reduced by 33i;^%. Fixed assets (net) were reduced by depreciation of $4,000, charged "^i to factory overhead and % to administrative expenses.    Sales of $60,000 were made on account of finished goods costing $38,000. Direct labor cost was $9,000. Factory overhead was applied at a rate of 100% of direct labor cost, leaving $2,000 unapplied that was closed into the cost of goods sold account. Total marketing and administrative expenses amounted to 10% and 15%, respectively, of the gross sales.

Required: (1) A balance sheet as of December 31, 19B.
(2) An income statement for the year 19B with details of the cost of goods manufactured and sold.