Create an income statement with the following information

Accounts	Unadjusted Balance
	12/31/2018 (In Millions)
Cash	$ 264
Accounts Receivable	$ 190
Inventory	$ 205
Investment Revenue Receivable	$ 6
Prepaid Insurance	$ 8
Long Term Investment	$ 131
Land	$ 150
Buildings & Equipment	$ 400
Accumulated Depreciation	$ (120)
Patent	$ 30
Accounts Payable	$ (50)
Interest Payable	$ (8)
Salaries Payable	$ (11)
Deferred Tax Liability	$ (8)
Income Tax Payable	$ (14)
Notes Payable	-
Lease Liability	-
Bonds Payable	$ (275)
Discount on Bonds	$ (22)
Common Stock	$ (410)
Paind in Capital Excess of Par	$ (85)
Preferred Stock	$ (75)
Treasury Stock	$ 9
Retained Earnings	$ (232)
Sales	$ (410)
Cost of Goods Sold	$ 185
Wage Expense	$ 78
Depreciation Expense	-
Amortization Expense	$ 2
Insurance Expense	$ 3
Interest Expense	$ 28
Investment Revenue	$ (11)
Income Tax Expense	-
Loss on Sale of Equipment	-
Gain on Sale of Investment	$ (2

Additional Information:

1) Investment revenue includes $6 million share of the net income of an Demur Company, equity method investee

2) Treasury bills were sold during 2021 at a gain of $2 million. XYZ Company classifies its investments in Treasury bills as cash equivalents

3) Equipment originally costings $70 million that was onehalf depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $17 million

4) Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $3 million.

5) The preferred stock of Tory Corporation was purchased for $25 million as a longterm investment.

6) Land costing $46 million was acquired by issuing $23 million cash and a 15%, fouryear, $23 million note payable to the seller.

7) The right to use a building was acquired with a 15 year lease agreement, present value of lease payments $82 million. Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 202

8) $60 million of bonds were retired at maturity.

9) In February, XYZ Company issued a 5% stock dividend (4 million shares). The market price of the $5 par value common stock was $7.50 per share at that time. Management neglected to record the cash dividends paid during the year of $22 million.

10). In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million. At December 31, 2018 there was $430M in common stock.

11) The effective income tax rate is 35%. A total of $35 million was paid in cash during 2018 for income taxes.

12) Depreciation expense for the year was $12M. Assets are depreciated on a straight line basis typically between 57 years for equipment and 40 years for buildings.

13) At December 31, 2018 XYZ Company owed employees $6 million in unpaid wages.

14) At December 31, 2018 XYZ Company had $4 million in unexpired insurance expense.

15) At December 31, 2018 XYZ Company had $109 Million in cash & cash equivalents.

16) Cost of goods sold was increased by $ 5 million during the year to correct an error in the calculation of 2016's ending inventory. The amount is material. Additionally, the company uses the firstin, firstout basis of accounting for inventory.

17). In November 2018, the State of Oklahoma filed suit against your company, seeking civil penalties and injunctive relief for violations of environmental laws regulating hazardous waste. On January 12, 2019, you reached a settlement with state authorities. Based upon discussions with legal counsel, the Company feels it is reasonably possible that $250,000 will be required to cover the cost of violations. Management believes that the ultimate settlement of this claim will not have a material adverse effect on the company.