Classic Motors, Inc., was formed on January 1, 2021. The following transactions occurred during 2021: A Click the icon to view the transactions On January 1, 2021, Classic issued its common stock for $575,000. Early in January, Classic made the following cash payments: a. $200,000 for equipment b. $324,000 for inventory (nine cars at $36,000 each) c. $24,000 for 2021 rent on a store building In February, Classic purchased four cars for inventory on account. Cost of this inventory was $192,000 ($48,000 each). Before year-end, the company paid off $57,600 of this debt. The company uses the first-in, first-out (FIFO) method to account In February, Classic purchased four cars for inventory on account. Cost of this inventory was $192,000 ($48,000 each). Before year-end, the company paid off $57,600 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory. During 2021, Classic sold ten autos for a total of $650,000. Before year-end, it had collected 50% of this amount. The business employs six people. The combined annual payroll is $150,000, of which Classic owes $3,000 at year-end. At the end of the year, the company paid income taxes of $13,000. Late in 2021, 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. 1. Prepare Classic's income statement for the year ended December 31, 2021. Use the single-step format, with all revenues listed together and all expenses together. Prepare Classic's balance sheet at December 31, 2021. Prepare Classic's statement of cash flows for the year ended December 31, 2021. Format cash flows from operating activities using the direct method. 2. 3