Question 1 Presto. Ltd began operations at the start of 2021. During the year, it made cash and credit sales totaling $974,000 and collected $906,000 in cash from its customers. It purchased inventory costing $512,000, paid $15,000 for dividends and the cost of goods sold was $487,000. The corporation paid the following expenses: Salary expense $240,000 Interest expense 22,000 Insurance expense 9,000 Supplies expense 18,000 Income tax expense 20,000 Required: 1. Prepare a multiple step income statement, in good form, showing revenues, expenses, pretax income, income tax expense, and net income at December 31, 2021. 2. Based on the above information, what is the amount of accounts receivable on the Statement of Financial Position prepared at the end of 2021? 3. Based on the above information, what is the amount of retained earnings on the Statement of Financial Position prepared at the end of 2021? Question 1 Presto. Ltd began operations at the start of 2021. During the year, it made cash and credit sales totaling $974,000 and collected $906,000 in cash from its customers. It purchased inventory costing $512,000, paid $15,000 for dividends and the cost of goods sold was $487,000. The corporation paid the following expenses: Salary expense $240,000 Interest expense 22,000 Insurance expense 9,000 Supplies expense 18,000 Income tax expense 20,000 Required: 1. Prepare a multiple step income statement, in good form, showing revenues, expenses, pretax income, income tax expense, and net income at December 31, 2021. 2. Based on the above information, what is the amount of accounts receivable on the Statement of Financial Position prepared at the end of 2021? 3. Based on the above information, what is the amount of retained earnings on the Statement of Financial Position prepared at the end of 2021?