On January 1, 2018, Retro issued its common stock for $510,000. Early in January, Retro made the following cash payments: a. $220,000 for equipment b. $243,000 for inventory (nine cars at $27,000 each) c. $25,000 for 2018 rent on a store building In February, Retro purchased three cars for inventory on account. The cost of this inventory was $117,000 ($39,000 per car). Before year-end, the company paid off $35,100 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory. During 2018, Retro sold eleven autos for a total of $649,000. Before year-end, it had collected 50% of this amount. The business employs two people. The combined annual payroll is $151,000, of which Retro owes $10,000 at year-end. At the end of the year, the company paid income taxes of $22,000. Late in 2018, Retro declared and paid cash dividends of $10,000.