Classic Motors, Inc., was formed on January 1, 2018. The following transactions occurred during 2018: (Click the icon to view the transactions.) Read the requirements Requirement 1. Prepare Classic's income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses together. Classic Motors, Inc. Income Statement Year Ended December 31, 2018 Revenue: Expenses Requirement 2. Prepare Classic's balance sheet at December 31, 2018 Classic Motors, Inc. Balance Sheet December 31, 2018 Liabilities Current assets Current liabilities: Assets Stockholders' equity Property, plant, and equipment: Loss Accumulated depreciation Cash Common stock Cost of goods sold Depreciation expense Income tax expense Net income (loss) Rent expense Retained earnings Salary expense Sales revenue Requirement 3. Prepare Classic's statement of cash flows for the year ended December 31, 2018. Format cash flows from operating activities using the indirect method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash. Enter "y" for zero balances.) Classic Motors, Inc. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by (used for) operating activities. Net cash provided by used for) operating activities Cash flows from investing activities: Net cash provided by used for) investing activities Cash flows from financing activities: Net cash provided by used for financing activities Net Increase (decreaso) in cash Depreciation Increase in accounts payable Increase in accounts receivable Increase in inventory Increase in salary payable Issuance of common stock Net income Payment of dividend Purchase of equipment More info X - On January 1, 2018, Classic issued its common stock for $440,000. Early in January, Classic made the following cash payments: a. $180,000 for equipment b. $203,000 for inventory (seven cars at $29,000 each) c. $17,000 for 2018 rent on a store building In February, Classic purchased two cars for inventory on account. The cost of this inventory was $80,000 ($40,000 per car). Before year-end, the company paid off $64,000 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory During 2018, Classic sold eight autos for a total of $488,000. Before year-end, it had collected 70% of this amount. The business employs five people. The combined annual payroll is $125,000, of which Classic owes $3,000 at year-end. At the end of the year, the company paid income taxes of $12,600. Late in 2018, Classic declared and paid cash dividends of $19,000. For equipment, Classic uses the straight-line depreciation method, over five years, with zero residual value. Requirements 1. Prepare Classic's income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses together 2. Prepare Classic's balance sheet at December 31, 2018. 3. Prepare Classic's statement of cash flows for the year ended December 31, 2018. Format cash flows from operating activities using the indirect method