From the information that follows, prepare an income statement and balance sheet for ABC Management Consulting for presentation at the annual board of directors meeting. Use proper formatting of financial statements by reviewing the various illustrations and exhibits in the texts. For the purposes of this assignment, you can ignore income taxes. You may use either a word-processing or electronic spreadsheet program to present your information.

Cash: $15,000.
Sales: $742,460.
Long-term investments: $100,000.
Accounts receivable: $60,660.
Depreciation expense: $10,000.
Office supplies: $17,000.
Salaries expense: $105,000.
Prepaid insurance: $3,600.
Interest expense: $3,750.
Office equipment: $120,000.
Insurance expense: $4,600.
Accounts payable: $32,000.
Rent expense: $14,400.
Interest payable: $2,150.
Office supplies expense: $3,000.
Salaries payable: $16,000.
Advertising expense: $48,000.
Long-term notes payable: $75,000.
Utilities expense: $11,000.
Retained earnings: $120,000.
Interest earned: $5,000.
Inventory: $79,755.
Cost of goods sold: $406,845.
Accumulated depreciation: $10,000.

To prepare an income statement and balance sheet for ABC Management Consulting, we will need to categorize the provided information into relevant sections of the financial statements.

Income Statement:
The income statement shows the company's revenues, expenses, and net income for a specific period of time. It starts with the revenues, subtracts the cost of goods sold and operating expenses, and provides the net income.

Revenues:
- Sales: $742,460
- Interest earned: $5,000

Cost of Goods Sold:
- Cost of goods sold: $406,845

Operating Expenses:
- Depreciation expense: $10,000
- Salaries expense: $105,000
- Insurance expense: $4,600
- Rent expense: $14,400
- Office supplies expense: $3,000
- Advertising expense: $48,000
- Utilities expense: $11,000
- Interest expense: $3,750

To calculate the net income, subtract the cost of goods sold and operating expenses from revenues:
Net income = (Sales + Interest earned) - (Cost of goods sold + Operating expenses)

Balance Sheet:
The balance sheet provides a snapshot of a company's financial position at a specific point in time. It consists of assets, liabilities, and shareholders' equity.

Assets:
- Cash: $15,000
- Long-term investments: $100,000
- Accounts receivable: $60,660
- Office supplies: $17,000
- Prepaid insurance: $3,600
- Office equipment: $120,000
- Inventory: $79,755
- Accumulated depreciation: $10,000

Liabilities:
- Accounts payable: $32,000
- Interest payable: $2,150
- Salaries payable: $16,000
- Long-term notes payable: $75,000

Shareholders' Equity:
- Retained earnings: $120,000

Now, you can use a word-processing or electronic spreadsheet program to organize the information and format it into an income statement and balance sheet according to the guidelines and templates provided in your course materials.