Classic Motors, Inc., was formed on January 1, 2016. The following transactions ocurred during 2016: (Click the icon to view the transactions.) Read the requirements 0 Requirements pgether and all expenses together. Requirement 1. Prepare Classic's income statemen Classic Motors, Inc. Income Statement Year Ended December 31, 2 1. Prepare Classic's income statement for the year ended December 31, 2016. Use the single step format, with all revenues listed together and all expenses together 2. Prepare Classic's balance sheet at December 31, 2016. 3. Prepare Classic's statement of cash flows for the year ended December 31, 2016. Formal cash flows from operating activities by using the direct method Revenue: Expenses Print Done More Info On January 1, 2016, Classic issued its common stock for $350,000. Early in January, Classic made the following cash payments: a. $140,000 for equipment b. $175,000 for inventory (five cars at $35,000 each) c. $19,000 for 2016 rent on a store building In February, Classic purchased six cars for inventory on account. Cost of this inventory was $282,000 ($47,000 each). Before year-end, Classic paid $169,200 of this debt. The company uses the first-in, first-out (FIFO) method to account for inventory. During 2016, Classic sold 6 autos for a total of $426,000. Before year-end, it had collected 90% of this amount. The business employs three people. The combined annual payroll is $90,000, of which Classic owes $6,000 at year-end. At the end of the year, Classic paid income tax of $14,000. Late in 2016, Classic declared and paid cash dividends of $17,000. For equipment, Classic uses the straight-line depreciation method, over five years, with zero residual value. Print Done