Raintree Corporation maintains its records on a cash basis. At the end of each year the company's accountant obtains the necessary information to prepare accrual basis financial statements. The following cash flows occurred during the year ended December 31, 2021 $540,000 2,720 50,000 $592,720 Cash receipts: From customers Interest on note Issue of common stock Total cash receipts Cash disbursements: Purchase of merchandise Annual insurance payment Payment of salaries Dividends paid to shareholders Annual rent payment Total cash disbursements $238,000 198,000 9,000 18,000 $472,600 Selected balance sheet information: 12/31/2021 $119,000 106,000 118,000 Cash Accounts receivable Inventory Prepaid Insurance Prepaid rent Interest receivable Note receivable Equipment Accumulated depreciation equipment Accounts payable (for merchandise) Salaries payable Common stock Dividends 12/31/2020 $ 43,000 '60,000 78,000 3,000 8,000 1,360 68,000 186,000 (58,000) 68,000 38,000 380,000 e 68,000 186,000 (91,000) 90,000 64.000 430,000 14,000 Additional information: 1. On June 30, 2020, Raintree lent a customer $68,000. Interest at 4% is payable annually on each June 30. Principal is due in 2024. 2. The annual insurance payment is made in advance on March 31. 3. Annual rent on the company's facilities is paid in advance on September 30. Required: 1. Prepare an accrual basis income statement for 2021 (ignore income taxes). RAINTREE CORPORATION Income Statement For the Year Ended December 31, 2021