Required information [The following information applies to the questions displayed below.) Assume you are the president of High Power Corporation. At the end of the first year of operations (December 31), the following financial data for the company are available: Accounts Payable Accounts Receivable Cash Common Stock Dividends Equipment Notes Payable Operating Expenses Other Expenses Sales Revenue Supplies $32,600 10,300 13,888 59,590 2,000 84,000 1,410 58,900 7,900 88,800 5,500 Required: 1. Prepare an income statement for the year ended December 31. HIGH POWER CORPORATION Income Statement For the Year Ended December 31 0 0 2. Prepare a statement of retained earnings for the year ended December 31. HIGH POWER CORPORATION Statement of Retained Earnings For the Year Ended December 31 Retained Earings, January 1 Retained Earnings, December 31 $ 0 3. Prepare a balance sheet at December 31. HIGH POWER CORPORATION Balance Sheet $ $ 0 0 0 $ LA 0 2-a. By how much did cash increase (decrease)? 2-b. Which financial statement would report the business activities responsible for the change in cash? Income Statement Statement of Retained Earnings Balance Sheet Statement of Cash Flows