Answer the following questions based on the information given below.

(a)Prepare income statement.

(b)Develop the project's cash flows over its project life.

(c)Prepare the cash flow statement with the required amount of working capital.

Name of the Company: Ethio furniture PLC.

Financial Data:

Investment: $600,000

Project life: 3 years

Estimated revenue: $ 150,000

Salvage value: $100,000

Annual additional expenses:

Labor: $30,000

Material: $13,000

Overhead: $20,000

Depreciation Method: Straight line approach

Income tax rate: 40%

Working capital required is $50,000.