P2-56B Prepare income statements (Learning Objective 5) Part One: In 2016, Lindsey Tapia opened Lindsey's Pets, a small retail shop selling pet sup- plies. On December 31, 2016, her accounting records show the following: Inventory on December 31, 2016 $ 9.400 Inventory on January 1, 2016 12,200 Sales revenue 55,000 Utilities for shop 1,500 Rent for shop.. 3.400 4,100 Sales commissions. 34,500 Purchases of merchandise 1 Requirement Prepare an income statement for Lindsey's Pets, a merchandiser, for the year ended December 31, 2016 Part Two: Lindsey's Pets succeeded so well that Lindsey decided to manufacture her own brand of pet toys-Best Friends Manufacturing. At the end of December 2017, her account ing records show the following: CHAPTER 2 Work in process inventory, December 31, 2017 Finished goods inventory, December 31, 2016 Finished goods inventory, December 31, 2017 Sales teve Customer service hotline expense Utilities for plant Delivery se Sales sales expense Pantalonial services Direct labour Direct material purchases Renton manufacturing plant Raw materials entory, December 31, 2016 w materials inventory, December 31, 2017 Work in Docs wery, December 31, 2016 $ 4000 0 3,000 103,000 1.400 4,500 2,500 4,200 1,250 20,000 39.000 8,400 10,000 8.000 0 Requirements 1. Prepare a schedule of cost of goods manufactured for Best Friends Manufacturing for the year ended December 31, 2017 2. Prepare an income statement for Best Friends Manufacturing for the year ended December 31, 2017 3. How does the format of the income statement for Best Friends Manufacturing differ from the income statement of Lindsey's Pets? Part Three: Show the ending inventories that would appear on these balance sheets: 1. Lindsey's Pets at December 31, 2016. 2. Best Friends Manufacturing at December 31, 2017