1.Financial Statements:Develop an Income Statement, Cash Flow Statement, and Balance Sheet based on the provided data for year 20XX (the previous year) that follows. Explain the purpose of each financial statement.

a.Income Statement Data for 20XX:

Gross Sales = $33,291

Coupons and Discounts = $549

Cost of Goods = $10,276

Labor = $0 (Mr. and Mr. Lee were the only ones working and did not pay themselves)

advertising fees =$2000

bank fees = $120

phone/internet = $1200

shipping = $1380

utilities = $900

office supplies = $785

Income tax = 26 %

b.Cash Flow Statement Data for 20XX:

Cash in bank = $21,120

Depreciation = $800

Proceeds from disposal of investment = $3,000

Capital Expenditure = -$1,600

Repayment of Bank Loan = -$5,000

Interest Expense Associated with Bank Loan = -$345

Consider any data relevant from the income statement.

c.Balance Sheet Data for 20XX:

Cash = $21,120

Accounts Receivable = $496

Accounts Payable = $200

Inventory = $10,507

Accumulated Depreciation = -$1,000

Common Stock = $0