Based upon the alphabetical list of accounts and amounts on the next page, use a computer spreadsheet to prepare the FORMAL multiple step income statement (including earnings per share), retained earnings statement, and classified balance sheet for your company for the year ended December 31, 2016 in a comparative format with 2016 and 2017 results in side by side columns. Assume a 32% tax rate on all items in 2017. Round all amounts on financial statements to the nearest dollar but report earnings per share to the nearest penny. Be sure to make corrections to your 2016 financial statements before you begin this project.

Based upon the alphabetical list of accounts on the following page and the partial list of transactions listed below and on the next page, which your company completed throughout 2017, prepare the statement of cash flow for your company for the year ended December 31, 2017 using the indirect method (just one year and NOT comparative for both years).

Purchased 100 shares of common treasury stock on April 1, 2017, for $27.00 per share.

Sold equipment for $2,172 in cash. This equipment cost $9,122 and had a book value of $950.

Purchased a patent for $2,000 in cash.

Purchased equipment for $8,550 and issued 300 shares of common stock as payment on August 1, 2017.

Purchased additional equipment for cash.

Declared $700 of cash dividends on June 1. The dividends were paid on June 19. Declared an additional $850 in cash dividends on December 15 which will be paid early in 2017.

Amortized the Premium on Bonds Payable.

Amortized the Premium on Held to Maturity Securities.

Depreciated the Equipment.

Amortized the Patent.

Debit Credit

Balances on December 31, 2017BalancesBalances

Accounts Payable $8,398

Accounts Receivable $9,885

Accumulated Depreciation Equipment 43,120

Advertising Expense 8,714

Amortization Expense 200

Allowance for Doubtful Accounts 911

Bad Debts Expense 756

Bonds Payable (due in 2020, 7% interest) 50,000

Cash 8,325

Cash Dividend Declared 1,550

Cash Dividend Payable 850

Common Stock, $10 par (10,000 shares authorized) 18,000

Cost of Goods Sold 58,369

Depreciation Expense 13,026

Equipment 171,804

Gain on Sale of Assets 1,222

Held to Maturity Securities 5,000

Income Tax Expense (32% rate in 2016) ? ? ?

Income Tax Payable ? ? ?

Insurance Expense 1,385

Interest Expense 3,100

Interest Income 290

Interest Payable 1,200

Merchandise Inventory 13,197

Paid in Capital in Excess of Par Common 33,610

Patent 1,800

Premium on Bonds Payable 1,600

Premium on Held to Maturity Securities 240

Prepaid Insurance 1,260

Retained Earnings, January 1 34,165

Rent Expense 9,860

Research and Development Expense 4,616

Sales 140,611

Treasury Stock 2,700

Utilities Expense 5,524

Wages Expense 12,987

Wages Payable 321

TOTAL $$$$$ $$$$$