Q3: Create an income statement including taxes and required EPS disclosures for 2021.

Sales 385,000$ All sales on credit Depreciation expense 16,000$ Not including depreciation on assets acquired in 2020 Amortization expense 3,000$ Same for tax purposes Interest Expense 6,900$ Paid in cash Wages Expense 33,600$ Paid in cash Insurance expense 4,700$ Includes $2000 paid for life insurance premiums and expired insurance Collections on A/R = 340,000 Payments on A/P = 239,500 all accounts payable deal with inventory Paid income taxes payable in Jan 2021 Payment on Note payable = 20,000 Inventory Purchases on credit = 241,000 and ending inventory $53,400 with 1.11 index Payment of all accrued interest. Lease payments as called for in agreements from 2020 including the change in asset/liability Transactions the accountant needs help with: February 1 and August 1 payments on bonds payable Mar 1, 2021 purchased 500 shares in the open market for $26 each August 1, 2021 Sold equipment that XYZ no longer needed for $400 in cash The equipment had originally been purchased for 5000 at the beginning of 2013 and fully depreciated last year November 30 Discovered an asset retirement obligation on one piece of a building that will cost $50,000 in 20 years December 30, 2021 use of patent changed sufficiently to test for impairment future cash flows equal to $6,500/yr for 4 years Dec 30, 2021 paid dividends equal to $.60 per share. Record accrued interest and depreciation on 2020 asset Other Information Tax rate is 21% Incremental borrowing rate 7% No half year convention