Julie operates a small aerobics studio, Yumba, Inc. She started her business on 01/01/17. Below are a list of transactions and financial events that took place during the fiscal year-end 2017. She has been authorized by the state of Oregon to sell up to 500 shares of common stock ($1 par value). Please prepare an income statement on the accrual basis and a statement of cash flows.

Yumba issues 250 shares to Julie for $75,000.

Julie takes out a 5 year (annual payments) loan of $90,000 on January 1^st. She will make her first payment on December 31, 2017. Interest rate of 8%.

Julie buys a building and equipment for her studio totaling $60,000 on January 1^st.

During the year, Julie earns $135,000 of revenue, of which $110,000 is received in 2017 and the remainder will be received in 2018.

Julie incurs $35,000 of salaries to her employees. Julie pays out $22,000 in 2017 and will pay out the remaining amount at the beginning of 2018.

Julie incurs $26,000 in utility costs. She pays $24,000 of these costs in 2017 and will pay out the remaining amount in 2018.

Julie incurs $5,000 to advertise in the local newspaper. She pays all of these expenses in 2017.

On December 31^st:

Julie pays the first payment on her loan (including interest).

Julie depreciates the building and equipment over 10 years, straight-line (no salvage value).

Julie pays herself a dividend of $5,000.