P1-5. Financial statements, including statement of cash flows. Pendray Systems Corporation began operations on January 1, 2015 as a n online retailer of computer software and hardware. The following financial statement data were taken from Pendray's records at the end of its first year of operations, December 31, 2015. Accounts payable Accounts receivable Cash $40,000 88,000 ? Cash payments for operating activities 896,000 Cash receipts from operating activities 1,087,000 Common stock 120,000 Cost of sales Dividends 650,000 90,000 Income tax expense 87,000 Income taxes payable Interest expense 15,000 3,000 Inventories 111,000 Note payable (due in ten years) 80,000 Property, plant, and equipment Retained earnings Sales Selling and administrative expenses 265,000 ? 1,175,000 100,000 Instructions 1. Prepare an income statement for the year ended December 31, 2015. 2. Prepare a statement of stockholders' equity for the year ended December 31, 2015. 3. Prepare a balance sheet as of December 31, 2015. 4. Prepare a statement of cash flows for the year ended December 31, 2015.