Antioch Company makes eBook readers. The company had the following amounts at the beginning of Year 2 : Cash, 5668.000 . Raw Materials Inventory, $64,000, Work in Proces5 inventory, $38,000. Finished Goods inventory, $44,000;; Common Stock, $585,000; and Retained Earnings, $229,000. Antioch experienced the following accounting events during Year 2 . Other than the adjusting entries for depreciation, assume that all transactions are cash transactions. 1. Paid $24,000 of research and development costs. 2. Paid $63,000 for raw materials that will be used to make eBook readers: 3. Placed $87,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $71,000 for salaries of selling and administrative employees. 5. Paid $110,000 for wages of production workers. 6. Paid 592,000 to purchase equipment used in selling and administrative offices. 7. Recognized depreciation on the oftice equipment. The equipment was acquired on January 1, Year 2 . it has a $12,000 salvage value and a eight-year life. The amount of depreciation is computed as [(Cost - salvage) + useful ife]. Specifically. (\$92,000 - $12,000)+8 =$10,000 8. Paid $154,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, Year 2 . It has a $28,000 salvage value and a nine-year life. The amount of depreciation is computed as ((Cost - salyage) + useful ife). 5 pecifically, (\$154, 000 $28,000)+9=$14,000 10. Paid $58,000 for rent and utily costs on the manufacturing facility. 11. Paid $72,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost). 12. Completed and transferred eBook readers that had total cost of $259.000 from work in process inventory to finished goods. 13. Sold 970 eBook readers for $433,000. 14. It cost Antioch $174,600 to make the eBogk readers sold in Event 13 . a. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). The first event is recorded as an example. c-1. Prepare a schedule of cost of goods manufactured and sold for the year. c-2. Prepare a formal income statement for the year. c-3. Prepare a balance sheet for the year. d. Distinguish between the product costs and the upstream costs that Antioch incurred. * Answer is not complete. Complete this question by entering your answer in the tabs below. Prepare a schedule of cost of goods manufactured and sold for the year. Note: Amounts to be deducted should be indicated with a minus sign. Complete this question by entering your answer in the tabs below. Prepare a formal income statement for the year. Note: Indicate amounts to be deducted with a minus sign. ANTIOCH COMPANY Balance Sheet As of December 31, Year 2 Assets