Question 3 (25 marks) Envoi was formed on January 1, 2016, when Envoi issued common shares for $500,000. Early in January 2016, Envoi made the following cash payments: a. $250,000 for equipment b. $200,000 for inventory (four cars at $50,000 each) c. $10,000 for 2016 rent on a store building In February 2016, Envoi purchased six cars for inventory on account. Cost of this inventory was $260,000 ($43,333.33 each). Before year-end, Envoi paid $208,000 of this debt. Envoi uses the FIFO method to account for inventory. During 2016, Envoi sold eight vintage autos for a total of $600,000. Before year-end, Envoi collected 80% of this amount. The business employs three people. The combined annual payroll is $55,000, of which Envoi owes $4,000 at year end. At the end of the year, Envoi paid income tax of $10,000. Late in 2016, Envoi declared and paid cash dividends of $11,000. For equipment, Envoi uses the straight-line depreciation method over five years with zero residual value. Requirements 1. Prepare Envoi's income statement for the year ended December 31, 2016. Use the single- step format, with all revenues listed together and all expenses listed together. Caile baten 100% + Give Feedb ge 2 of 12 1,022 words English (U.S.) 20_Spring Midt ermquestions W 4 4 Capstone proj PPT.pptx