Problem 2 As you finish your first assignment, the CEO messages you again and says, "Change of Plans", the Board of Directors wants to understand the health of the business. He says he found some high-level numbers and tells you to forget what you did in the first assignment, but now wants you to assume the following: In 2020, Total sales for Covid, Inc. were 1,000,000 with COGS of 300,000. Operating Expenses for Wage Expense, Rent Expense, Depreciation Expenses and Utilities Expenses were 250,000, 36,000, 30,000, and 18,000, respectively. Assume no other income or expenses. Then for the balance sheet, he has been able to find some historical items and listed the values below. Category Cash and Cash Equivalents Note Payable (Due in 2021) Deferred Income Taxes Inventory December 31, 2020 December 31, 2019 $170,000 $150,000 $ - $50,000 $10,000 $25,000 $70,000 $90,000 Debt Payable (Due in 2025) $5,000 $5,000 Taxes Payable $10,000 $18,000 Property, Plant and Equipment (Net of Accumulated Depreciation) $40,000 $40,000 Notes Receivable (Due in 2023) $ - $20,000 Accounts Payable $50,000 $30,000 Common Stock (50,000 shares as 1 per share value) $50,000 $50,000 Wages payable $10,000 $50,000 Accounts Receivable (Net of Allowance) $85,000 $80,000 Security Deposit on Land (Lease Through 2025) $10,000 $10,000 Prepaid Assets $80,000 $100,000 Interest Payable $1,500 $1,000 Retained Earnings $398,500 $ He asks you: 1) To create a simple income statement based on the above. 2) To create a simple balance sheet based on the above.