Prepare an income statement for the year ended December 31, 2021. Prepare the statement of stockholders' equity.The net income on the income statement must the same net income which appears as part of the balance sheet equity section as of the same date. A partial balance sheet for orange company is presented below. The total acquisition cost of these. Capital surplus, or share premium, most commonly refers to the surplus resulting after common stock is sold for more than its par value. Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. The income statement is a flow statement because it shows how income and expenses caused the increase or decrease in capital from one period to the next. In this video we'll build a three statement financial model where we'll have a fully integrated income statement balance sheet and cash flow statement. Pro forma financial statements are projections of future expenses and revenues, based on a company's past experience and future plans.