Fast 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 Fast's income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses together. i More Info Fast Motors, Inc. Income Statement Year Ended December 31, 2018 Revenue: Sales revenue Expenses: Cost of goods sold Depreciation expense Rent expense Salary expense On January 1, 2018, Fast issued its common stock for $430,000. Early in January, Fast made the following cash payments: a. $160,000 for equipment b. $234,000 for inventory (six cars at $39,000 each) c. $18,000 for 2018 rent on a store building In February, Fast purchased four cars for inventory on account. The cost of this inventory was $192,000 ($48,000 per car). 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 2018, Fast sold seven autos for a total of $504,000. Before year-end, it had collected 80% of this amount. The business employs two people. The combined annual payroll is $60,000, of which Fast owes $12,000 at year-end. At the end of the year, the company paid income taxes of $22,000. Late in 2018, Fast declared and paid cash dividends of $15,000. For equipment, Fast uses the straight-line depreciation method, over five years, with zero residual value. Income tax expense Net income (loss) Requirement 2. Prepare Fast's balance sheet at December 31, 2018 Fast Motors, Inc. Choose from any list or enter any number in the input fields and then contin Fast Motors, Inc. Balance Sheet December 31, 2018 Assets Liabilities Current assets: Current liabilities: Cash Accounts payable Accounts receivable | Salary payable Inventory Total current liabilities Total current assets Stockholders' equity Common stock Property, plant, and equipment: Equipment Retained earnings Less: Accumulated depreciation Total stockholders' equity Total assets Total liabilities and stockholders' equity Requirement 3. Prepare Fast'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 "O" for zero balances.) Fast Motors, Inc. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2018 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation Increase in accounts receivable Increase in inventory Increase in accounts payable Increase in salary payable Net cash provided by (used for) operating activities Cash flows from investing activities: | Purchase of equipment Net cash provided by (used for) investing activities Cash flows from financing activities: Issuance of common stock Payment of dividend Net cash provided by (used for) financing activities Net increase (decrease) in cash Cash balance, December 31, 2017 Cash balance, December 31, 2018