Please complete the requirements: Classic Motors, Inc., was formed on January $1,2021.$ The following transactions occurred during $2021$:

$($Click the icon to view the transactions.$)$

Read the requirements.

Requirement $1.$ Prepare Classic's income statement for the year ended December $31,2021.$ Use the single$-$step format, with all revenues listed together and all expenses together.

Classic Motors, Inc.

Income Statement

Year Ended December $31,2021$

Revenue:

Expenses:

$$

$$

$$

$$

$$

$$

Requirements

Prepare Classic's income statement for the year ended December $31,2021.$ Use the single$-$step format, with all revenues listed together and all expenses together.

Prepare Classic's balance sheet at December $31,2021.$

Prepare Classic's statement of cash flows for the year ended December $31,2021.$ Format cash flows from operating activities using the indirect method.

More info

On January $1,2021,$ Classic issued its common stock for $$350,000.$ Early in January, Classic made the following cash payments:

a$.$ $$150,000$ for equipment

b$.$ $$125,000$ for inventory $($five cars at $$25,000$ each$)$

c$.$ $$25,000$ for $2021$ rent on a store building

In February, Classic purchased six cars for inventory on account. The cost of this inventory was $$282,000($ $$47,000$ per car$).$ Before year$-$end, the company paid off $$112,800$ of this debt. The company uses the first$-$in$,$ first$-$out $($FIFO$)$ method to account for its inventory.

During $2021,$ Classic sold six autos for a total of $$426,000.$ Before year$-$end, it had collected $80\%$ of this amount.

The business employs three people. The combined annual payroll is $$90,000,$ of which Classic owes $$7,000$ at year$-$end. At the end of the year, the company paid income taxes of $$14,000.$

Late in $2021,$ Classic declared and paid cash dividends of $$19,000.$

For equipment, Classic uses the straight$-$line depreciation method, over five years, with zero residual value.

Classic Motors, Inc., was formed on January $1,2021.$ The following transactions occurred during $2021$:

$($Click the icon to view the transactions.$)$

Read the requirements.

Requirement $1.$ Prepare Classic's income statement for the year ended December $31,2021.$ Use the single$-$step format, with all revenues listed together and all expenses together.

Classic Motors, Inc.

Income Statement

Year Ended December $31,2021$

Revenue:

Expenses:

$$

$$

$$

Requirements

Prepare Classic's income statement for the year ended December $31,2021.$ Use the single$-$step format, with all revenues listed together and all expenses together.

Prepare Classic's balance sheet at December $31,2021.$

Prepare Classic's statement of cash flows for the year ended December $31,2021.$ Format cash flows from operating activities using the indirect method.

More info

On January $1,2021,$ Classic issued its common stock for $$350,000.$ Early in January, Classic made the following cash payments:

a$.$ $$150,000$ for equipment

b$.$ $$125,000$ for inventory $($five cars at $$25,000$ each$)$

c$.$ $$25,000$ for $2021$ rent on a store building

In February, Classic purchased six cars for inventory on account. The cost of this inventory was $$282,000($ $$47,000$ per car$).$ Before year$-$end, the company paid off $$112,800$ of this debt. The company uses the first$-$in$,$ first$-$out $($FIFO$)$ method to account for its inventory.

During $2021,$ Classic sold six autos for a total of $$426,000.$ Before year$-$end, it had collected $80\%$ of this amount.

The business employs three people. The combined annual payroll is $$90,000,$ of which Classic owes $$7,000$ at year$-$end. At the end of the year, the company paid income taxes of $$14,000.$

Late in $2021,$ Classic declared and paid cash dividends of $$19,000.$

For equipment, Classic uses the straight$-$line depreciation method, over five years, with zero residual value.