Required information [The following information applies to the questions displayed below.) The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: 1. Received $41,500 cash from the issue of a short-term note with a 5 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. 2. Received $121,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent. 3. Paid $70,000 cash for other operating expenses during the year. 4. Paid the sales tax due on $101,000 of the service revenue for the year. Sales tax on the batance of the revenue is not due until Year 2 5. Recognized the accrued interest at December 31, Year 1. The following transactions apply to Walnut Enterprises for Year 2: 1. Poid the balance of the sales tax due for Year 1 2. Received $146,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent 3. Repaid the principal of the note and applicable interest on April 1, Year 2 4. Pald $83,000 of other operating expenses during the year. 5. Paid the sales tax due on $121,000 of the service revenue. The sales tox on the balance of the revenue is not due until Year 3. (For all requirements, round your Intermediate and final answers to the nearest whole dollar amount.) 1. Prepare an income statement for Year 1. -2. Prepare a statement of changes in stockholders' equity for Year 1. 3. Prepare a balance sheet for Year 1. c-4. Prepare a statement of cash flows for Year 1. c-1. Prepare an income statement for Year 1. c-2. Prepare a statement of changes in stockholders' equity for Year 1. c-3. Prepare a balance sheet for Year 1. C-4. Prepare a statement of cash flows for Year 1. Complete this question by entering your answers in the tabs below. Reg 1 Reg C2 Req C3 Reg C4 Prepare an income statement for Year 1. WALNUT ENTERPRISES Income Statement For the Year Ended December 31, Year 1 Service revenue Expenses Operating expenses Interest expense Total operating expenses 0 0 $ 0 Prepare a statement of changes in stockholders' equity for Year 1. WALNUT ENTERPRISES Statement of Changes of Stockholders' Equity For the Year Ended December 31, Year 1 Common stock Beginning retained earnings Add: Net income Total stockholders' equity 0 0 $ Req C1 Req c2 Reg C3 Req C4 Prepare a balance sheet for Year 1. WALNUT ENTERPRISES Balance Sheet As of Decemist 31, Year 1 Assets $ Total assets Liabilities 0 ces Total liabilities Stockholders' equity 0 Total stockholders' equity Total liabilities and stockholders' equity 0 $ 0 WALNUT ENTERPRISES Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: Net cash flow from financing activities Net change in cash 0 0 Ending cash balance $ 0