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Katz Manufacturing Company started operations by acquiring $100,000 cash from the issue of common stock. On January 1, 2013, the company purchased equipment that cost $100,000 cash, had an expected useful life of six years, and had an estimated salvage value of $4,000. Katz Manufacturing earned $72,000 and $83,000 of cash revenue during 2013 and 2014, respectively. Katz Manufacturing uses double declining balance depreciation.
Required:
Prepare income statements, balance sheets, and statements of cash flows for 2013 and 2014. Use a vertical statements format.
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