..ll Freedom 84% 10:37 AM chegg.com Envoi was formed on January 1, 2016, when Envolued common shares for $500,000. La January 2016, Envol made the following cash payments: a. $250,000 for equipment b. $200,000 for inventory (four cars at $50,000 each c. $10,000 for 2016 rent on a store building In February 2016, Envol purchased six cars for inventory on account. Cost of this inventory was $260,000 ($43,333,33 each). Before year-end, Envol paid $200,000 of this debt. Envol uses the FIFO method to account for inventory. During 2016, Envoi sold eight vintage autos for a total of 5600,000. Before year-end. Envel collected 80% of this amount. The business employs three people. The combined annual payroll is $55,000, of which invol owes $4,000 at year end. At the end of the year, Envoi paid income tax of $10,000 Late in 2016, Envoi declared and paid cash dividends of $11,000 For equipment, Envol uses the straight-line depreciation method over five years with pero residual value. Requirements 1. Prepare Envol's income statement for the year ended December 31, 2016. Use the single step format, with all revenues listed together and all expenses listed together