PART D: Financial Statements INSTRUCTION: Read the questions carefully and use the information provided in each question to answer that question. Show all your calculation and workings. QUESTION 1 Meera started a business on January 1,2017 called Aroma, Inc. Aroma is a retail company that sells flowers and decorative plants. the following information was available on Aroma Inc. : During 2017, Aroma made sales totaling OMR 50,000 and paid OMR 42,000 in cash to its creditors. It purchased equipment costing OMR 25,000, paid OMR 1,500 for dividends and the cost of flowers and plants (goods) sold was OMR 21,000. Also, the corporation incurred the following expenses during 2017: Salaries $8,000 Interest 500 Insurance 400 600 Electricity Rent 340 Requirements: Using the above information, prepare the income statement for Aroma Inc, for the year ended December31, 2017. (Rubrics: 0.25 mark for each correct element and correct form for Income Statement and heading , 0.5 mark for the correct calculations of Net Income. Total = 3 marks) b According to the information provided, what will be the effect of paying $42,000 to creditors on the accounting equation elements of Aroma Inc.? (Rubrics: 0.5 mark for correct answer. Total = 0.5 mark) Using the above information, what is the amount of retained earnings on the balance sheet prepared as of December 31, 2017? (Rubrics: 1 mark for correct calculation and answer. Total = 1 mark)