On January 1, 2021, Retro issued its common stock for $440,000. Early in January, Retro made the following cash payments: a. $180,000 for equipment b. $203,000 for inventory (seven cars at $29,000 each) c. $17,000 for 2021 rent on a store building In February, Retro purchased two cars for inventory on account. The cost of this inventory was $80,000 ( $40,000 per car). Before year-end, the company paid off $24,000 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory. During 2021, Retro sold eight autos for a total of $488,000. Before year-end, it had collected 50% of this amount. The business employs five people. The combined annual payroll is $125,000, of which Retro owes $8,000 at year-end. At the end of the year, the company paid income taxes of $12,600. Late in 2021 , Retro declared and paid cash dividends of $11,000. For equipment, Retro uses the straight-line depreciation method, over five years, with zero residual value. Retro Motors, Inc., was formed on January 1, 2021. The following transactions occurred during 2021: 1 (Click the icon to view the transactions.) Read the requirements 2. Requirement 1. Prepare Retro's income statement for the year ended December 31, 2021. Use the single-step format, with all revenues listed together and all expenses together. Requirement 2. Prepare Retro's balance sheet at December 31, 2021