HW 11 # 8

Antique Motors, Inc., was formed on January 1, 2021. The following transactions occurred during 2021: 8. (Click the icon to view the transactions.) Read the requirements. Requirement 1. Prepare Antique's income statement for the year ended December 31, 2021. Use the single-step format, with all revenues listed together and all expenses together. More info On January 1, 2021. Antique issued its common stock for $575,000. Early in January, Antique 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, Antique 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 $76,800 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory. During 2021, Antique sold ten autos for a total of $650,000. Before year-end, it had collected 80% of this amount. The business employs six people. The combined annual payroll is $150,000, of which Antique owes $11,000 at year-end. At the end of the year, the company paid income taxes of $13,000. Late in 2021, Antique declared and paid cash dividends of $18,000. For equipment, Antique uses the straight-line depreciation method, over five years, with zero residual value. Requirements 1. Prepare Antique's income statement for the year ended December 31, 2021. Use the single-step format, with all revenues listed together and all expenses together. 2. Prepare Antique's balance sheet at December 31, 2021. 3. Prepare Antique's statement of cash flows for the year ended December 31, 2021. Format cash flows from operating activities using the indirect method. Requirement 1. Prepare Antique's income statement for the year ended December 31, 2021. Use the single-ste with all revenues listed together and all expenses together