ABC Incorporated manufactures and sells toys. The following is its balance sheet as of December 31st, 2020.

ASSETS, Cash $250,000; Accounts Receivable $112,000; Inventory $330,000; Property, Plant and Equipment (Less Accumulated Depreciation, 150,000) $630,000; Total $1,322,000.

LIABILITIES AND STOCKHOLDERS EQUITY Accounts Payable $100,000; Dividends Payable $50,000; Retained earnings $1,080,000; Preferred Stock (100 shares of $500 face value each) 50,000; Common Stock 42,000; TOTAL 1,322,000.

The following is the relevant information for 2021:

1. Sales Revenues in 2021 were $480,000. The cost of Goods Sold was 55% of Sales. Selling, general and administrative expenses were 10% of Sales. Other operating expenses were 4% of Sales.

2. Purchased Equipment of $60,000 on Jan 1st, 2021.

3. The company follows a depreciation policy of charging 10% depreciation of the beginning gross fixed assets both for existing assets and any new assets.

4. Purchased some patents on Dec 31st, 2021, for $110,240

5. Cash, Accounts Receivables, Accounts Payable, and Inventories increased by 10% over the previous year.

6. The dividends payable of $50,000 was paid off by issuing a note payable of $50,000 on Jan 1st, 2021. The interest rate on the note was 6%.

7. Raised funds of $100,000 by issuing new equity.

8. This year, common stock dividends were $6,000, which will be paid next year (i.e. in 2022). The preferred stock dividend is 8% of the face value of the preferred shares.

9. Assume a tax rate of 20%.

Required: Create an Income statement, Statement of Retained Earnings, Balance Sheet, and Cash Flow Statement for the year ending December 31st 2021.