Requirement 2. Prepare Dazzling's balance sheet at December 31, 2021. Dazzling Motors, Inc. Balance Sheet December 31, 2021 Assets Liabilities Current assets: Property, plant, and equipment: Equipment Less: Accumulated depreciation Current liabilities: Accounts payable Salary payable Total current fiabalitios Stockholders' equity Common stock Retained eamings Total stockholders' equity Property, plant, and equipment: Common stock Retained earnings Less: Accumulated depreciation Total stockholders' equity Total liabilities and stockholders' equity Requirement 3. Prepare Dazzling's statement of cash flows for the year ended December 31, 2021. Format cash flows from operating activities using th minus sign for numbers to be subtracted and for a net decrease in cash. Enter "0" for zero balances.) Dazzling Motors, Inc. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2021 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by (used for) operating activities: Increase in inventory Increase in accounts payable Net cash provided by (used for) operating activities Cash flows from investing activities: Net cash provided by (used for) investing activities Cash flows from financing activities: Issuance of common stock Net cash provided by (used for) financing activities Net increase (decrease) in cash Cash balance, December 31,2020 Cash balance, December 31,2021 Darzing Motors, Inc, was formed on January 1, 2021. The following transactions occurred during 2021: (1) (Cick the icon to vew the transactions.) Resd the regivicements Requirement 1. Prepare Dazzing's income statement for the year ended December 31, 2021. Use the singlo-step format, with al revenues listed logether and all expenses logether. Dazzling Motors, inc. Income Statement Year Ended December 31, 2021 More info Revenue: Salos revenue Expenses: Cost of goods sold Salary expense ingome tax expense Depreciation exponse Rent expenso Net income (loss) Requirement 2. Prepare Dazzling's balance sheet a December 31, 2021. On January 1, 2021, Dazzing issued its commen stock for $510,000. Earty in January. Dazsing made the following cash payments a. 5220,000 for equigment b. $243,000 for inventory (nine cars at $27,000 each) c. $25,000 for 2021 ront on a stoes bulding In February. Dazxing purchased three cars for inventory on account. The cost of this inventory was $117.000 (\$39,000 per car) Before yoat end, the company paid off $46,800 of Bis debt The company uses the frstin, first-out (FiFO) method to account for ts inventary. Durng 2021, Dazring sold eleven aulos for a total of \$e49,000. Before year-end, it had oolected 90% of this amourt. The business employs two poople. The combined annual payroil is $151,000, of which Dazzling owes $10.000 at year-end. At the end of the yoar, the compary paid income taves of $22.000. Late n 2021, Dazzling declared and paid cash dividends of $11,000 For equpment, Dazring uses the straight-ine deprecistion meehod, over five years, with rero residual volue. Dazzling Motors, Inc. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2021 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation Increase in accounts receivable Increase in inventory Incrase in accounts payable Increase in salary payable Net cash provided by (used for) operating activities Cash flows from investing activities: Purchase of equipment