Antique Automobiles of Dallas, Inc., was formed on January 1, 2010. The following transactions occurred during 2010:
On January 1, 2010, Antique issued its common stock for $440,000. Early in January, Antique made the following cash payments:
a. $180,000 for equipment
b. $203,000 for inventory (seven cars at $29,000 each)
c. $17,000 for 2010 rent on a store building In February, Antique purchased two cars for inventory on account. Cost of this inventory was $80,000 ($40,000.00 each). Before year-end, Antique paid $56,000 of this debt. Antique uses the FIFO method to account for inventory.
During 2010, Antique sold eight vintage autos for a total of $488,000. Before year-end, Antique collected 80% of this amount.
The business employs five people. The combined annual payroll is $125,000, of which Antique owes $7,000 at year-end. At the end of the year, Antique paid income tax of $12,600.
Late in 2010, Antique declared and paid cash dividends of $12,000.
For equipment, Antique uses the straight-line depreciation method, over five years, with zero residual value.

Requirements
1. Prepare Antique Automobiles of Dallas, Inc.’s income statement for the year ended December 31, 2010. Use the single-step format, with all revenues listed together and all expenses together.
2. Prepare Antiques balance sheet at December 31, 2010.
3. Prepare Antiques statement of cash flows for the year ended December 31, 2010. Format cash flows from operating activities by using the indirect method.