5. Ann Collymore is the owner of Collymore wood products. Below is a list of her revenue and expenses in 2020. Revenue Sales $ 61,600.00 Expenses Rent $3,200.50 Service $110,416.00 Bank Charges $3,100.00 Repairs expense $2,375.00 Electricity expense $5,420.25 $4,975.12 Insurance expense $ 257.00 Utilities Fax Expense $1,200.00 a) Produce his income statement for the year ended December 31, 2020. (10 marks) 6. Debbie Arts shop is a successful shop. Since it was established five years ago it has gradually increased its range of plain and cheese biscuits. The sales director has now come to the board with a proposal to expand the business. This will involve the purchase of new machinery; the initial outlay will be 150 000. The finance director and the sales director meet to discuss sales projections for the new range of chocolate biscuits. They forecast the following net cash inflows over the five-year period until the machinery will need to be replaced: Year 1 38,000 Year 2 50,000 Year 3 55,000 Year 4 58,000 Year 5 58,000 In addition to these inflows, it is expected that the machinery will be sold for scrap at the end of year five for 12 000. a) Calculate the payback period for the project. (5 marks) b) Calculate the accounting rate of return (ARR) for the project. (5 marks) c) Calculate the net present value (NPV) for the project. (5 marks) d) Discuss the results and their potential impact on the Debbie Arts shop (5 marks)