Blue Spruce Industries is a small, owner-managed business that sells artificial Christmas trees and decorations. The owner of Blue Spruce, Terrie Leroy, is a busy entrepreneur who does not have a bookkeeper. She provides the bank account records for the business, as well as various other documents, to her accountant at the end of each year. The accountant uses this information to prepare both a balance sheet and an income statement. An analysis of bank deposits and disbursements prepared by the accountant for the current year showed the following: Bank Deposits: $ Proceeds of bank loan Collections from customers Collections on trade notes Interest received on notes receivable Total cash receipts 39,000 1,209,084 61,000 5,600 1,314,684 $ $ $ Bank Disbursements: Purchases of inventory Payment for new equipment Freight-in on purchase of merchandise Payments for selling expenses Payments for wages and salaries expenses Payment for insurance Dividends paid Payment of corporate income taxes Payment on bank loan (interest = $7,895) Total cash payments 746,571 11,154 59,726 69,302 119,460 12,482 42,000 62,000 13,193 1,135,888 $ Following is a list of assets and liabilities at the beginning and end of the current year that was prepared by the accountant: Jan. 1 Dec. 31 Cash $ 161,597 $ 340,393 Accounts receivable 88,266 135,256 Notes receivable 112,000 51,000 Inventory 101,818 111,810 Prepaid insurance 12,237 12,482 Land 55,000 55,000 Building (net of depreciation) 208,695 204,521 Equipment (net of depreciation) 142,228 147,040 Total assets 881,841 $ 1,057,502 Accounts payable Salaries and wages payable Corporate income tax payable Bank loans payable 51,792 $ 12,828 5,664 98,683 168,967 $ 46,665 16,832 3,468 132,385 199,350 According to the corporation's legal records, $5,000 in common share capital was issued at the inception of the corporation. No other shares have been issued or retired. Assume that all accounts payable arise from the purchase of inventory. REQUIRED: Prepare a draft income statement for the year. You may use the following template: Sales Cost of goods sold Opening Inventory Purchases (incl. Freight-in) Closing inventory Gross profit on sales Expenses: Selling expenses Wages and salaries expense Insurance expense Depreciation expense Total expenses Income (loss) from operations Other revenues and expenses Interest revenue Interest expense Profit (loss) before income taxes Income tax expense Profit (loss) for the year Note: Include schedules or show T-accounts for any calculation you perform. Alternatively, a worksheet is also attached. If using the worksheet, ensure that it's complete with columns totalled