Prepare the income statement for $2021.$ Include statement of retained earnings for $2021.$

B$.$ Prepare the balance sheet for $2021$ and $2020$

C$.$ Prepare Common$-$Size financial statements for the income statement and balance sheet for $2021.$

D$.$ Prepare Statement of Cash Flows for $2021$

Items $20212020$

Sales $$2,200,000$ $$1,900,000$

Cash $100,00070,000$

Selling$/$Admin Expenses $420,000500,000$

Retained Earnings $600,000500,000$

Long$-$term debt $120,00070,000$

Cost of goods sold $1,300,0001,100,000$

Depreciation $150,000130,000$

Long$-$term investments $70,00080,000$

Gross Fixed Assets $2,400,0002,000,000$

Interest Expenses $90,00070,000$

Shares outstanding $($$$1$ par$)120,000120,000$

Market Price of stock $3\mathrm{.}54$

Accounts Receivable $350,000300,000$

Accounts payable $440,000250,000$

Inventory $430,000410,000$

Notes Payable $400,000400,000$

Accumulated Depreciation $1,150,0001,000,000$

Accruals $50,00070,000$

Tax Rate $33\mathrm{.}34\%33\mathrm{.}34\%$

$($round your actual dollar tax to the nearest thousands$)$

Preferred Stock $($$$100$ par value$)900$ shares $900$ shares

Capital Paid in excess of Par $410,000410,000$

Prepaid Expenses $30,00050,000$

Preferred Stock Dividend paid $10,0000\mathrm{.}00$

Common Stock Dividend paid $50,0000\mathrm{.}00$

Instructions:

As a group, complete the following activities using the financial information above:

Part $1$: Financial Statements

 

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