ABC Incorporated manufactures and sells toys. The following was its balance sheet as on December 31st, 2020. ASSETS LIABILITIES AND STOCKHOLDERS EQUITY Cash $250,000 Accounts Payable $100,000 Accounts Receivable $112,000 Dividends Payable $50,000 Inventory $330,000 Retained earnings $1,080,000 Property, Plant and Equipment (Less Accumulated Depreciation, 150,000) $630,000 8% Preferred Stock (100 shares of $500 face value each) 50,000 Common Stock 42,000 TOTAL 1,322,000 TOTAL 1,322,000 The following is the relevant information in 2021: 1.Sales Revenues in 2021 was $480,000. 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, $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. Interest rate on the note was 6%. 7.Raised funds of $100,000 by issuing new equity. 8.For this year, common stock dividends were $6,000, which will be paid next year (i.e. in 2022). Preferred stock dividend is 8% of 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 ended December 31st 2021