Assume Company starts operations on 1/1/2013 with an equity investment of $711,750. The companies next 7 years of financial performance are listed below. Assume that the company has no permanent or temporary differences for the first three fiscal years. During Fiscal Year 2016 the company experiences a net operating loss. The marginal corporate tax rates for each year are located on the income statement. 1. Calculate taxable income (IRS), taxes payable (IRS) and tax expense (USGAAP) 2. How should the company account for the Net Operating Loss? 3. Provide ALL journal entries AND t-accounts. 4. Create a complete set of financial statements (I/S, SRE, B/S, SCF) for the firm for years 2013 through 2019. INCOME STATEMENT Cash Sales 1/1/13 $ - $ 12/31/13 711,750 $ 12/31/14 12/31/15 12/31/16 Credit Sales $ $ $ 711,750 $ - $ Installment Sales $ $ $ $ 711,750 $ - $ $ 109,500 $ - $ $ 12/31/17 766,500 $ 12/31/18 12/31/19 657,000 $ 684,375 - $ $ $ $ Total Revenues $ $ 711,750 $ 711,750 $ 711,750 $ 109,500 $ 766,500 $ 657,000 $ 684,375 Operating Expenses $ - $ 602,250 $ 602,250 $ 602,250 $ 602,250 $ 602,250 $ 602,250 $ 602,250 Gain/Loss $ - $ - $ - $ - $ $ $ $ Bad Debt Expenses (25% of Credit Sales) $ - $ - $ - $ - $ - $ $ $ Warranty Expenses (0% of Revs) $ $ $ - $ - $ $ $ $ Depreciation Expense $ $ $ $ $ $ $ $ EBT (Pre-tax Financial Income) $ $ 109,500 $ Tax Rates 0.00% 30.00% 109,500 $ 40.00% 109,500 $ 21.00% (492,750) $ 21.00% 164,250 $ 21.00% 54,750 $ 82,125 21.00% 21.00%