Requirements: 1.Prepare Dazzling Motors, Inc.'s, income statement for the year ended December? 31,2016. Use the? single-step format, with all revenues listed together and all expenses together.
2. Prepare Dazzling?'s balance sheet at December? 31, 2016.
3. Prepare Dazzling?'s statement of cash flows for the year ended Dec 31, 2016. Format cash flows from operating activities by using the indirect method. On January? 1, 2016?, Dazzling issued its common stock for $ 440,000. Early in? January, Dazzling made the following cash? payments: a. $ 180, 000 for equipment b. $ 203, 000 for inventory ?(seven cars at $ 29, 000 ?each) c. $ 17,000 for 2016 rent on a store building In? February, Dazzling purchased two cars for inventory on account. Cost of this inventory was $ 80,000 ?($ 40,000 ?each). Before? year-end, Dazzling paid $ 48,000 of this debt. The company uses the? first-in, first-out? (FIFO) method to account for inventory. During 2016?, Dazzling sold 8 autos for a total of $ 488,000. Before? year-end, it had collected 50?% of this amount. The business employs five people. The combined annual payroll is $ 125,000?, of which Dazzling owes $ 2,000 at? year-end. At the end of the? year, Dazzling paid income tax of $ 12,600. Late in 2016?, Dazzling declared and paid cash dividends of $ 29,000. For? equipment, Dazzling uses the? straight-line depreciation? method, over five? years, with zero residual value.