Income Statements and Statements of Cash Flow 1. This 'n That, Inc., a local variety store, recently published an income statement containing the following items Solve for the net income and prepare an income statement for the year ended December 31, 2010. Be sure to include an appropriate heading for the statement! Cost of sales 40 Net income ther expenses 12 Rental exp5 20 100 Salaries Sales a. You may (1) create this in Excel in a separate file, (2) cut and paste your Excel file into this Word document or (3) create the income statement at the end of this Word document. b. Assume the following about This 'n That, Inc. retained earnings account: Retained earnings 12/31/09 Dividend payment 12/1/10 $50,000 $2,000 Create a Statement of Retained Earnings at December 31, 2010