P.7 PREPARATION OF EXTERNAL STATEMENTS Additional information: Assume that the depreciation expense on selling equipment is included in selling expense. Depreciation on factory equipment is included in factory overhead. Taxes are paid in January of the following year. All raw materials are considered direct materials. Required: Prepare the following external statements for the period ended December 31, 19x0:: a) Cost of goods manufactured statement b) Income statement and Retained earnings statement. c) Balance sheet