Retro Motors, Inc., was formed on January $1,2021.$ The following transactions occurred during $2021$: Retro Motors, Inc., was formed on January $1,2021.$ The following transactions occurred during $2021$:

$($i$)($Click the icon to view the transactions.$)$

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Requirement $1.$ Pre

Revenue:

Expenses:

On January $1,2021,$ Retro issued its common stock for $$510,000.$ Early in January,

Retro made the following cash payments:

a$.$ $$220,000$ for equipment

b$.$ $$243,000$ for inventory $($nine cars at $$27,000$ each$)$

c$.$ $$25,000$ for $2021$ rent on a store building

In February, Retro purchased three cars for inventory on account. The cost of this

inventory was $$117,000($ $$39,000$ per car$).$ Before year$-$end, the company paid off

$$81,900$ of this debt. The company uses the first$-$in$,$ first$-$out $($FIFO$)$ method to account

for its inventory.

During $2021,$ Retro sold eleven autos for a total of $$649,000.$ Before year$-$end, it had

collected $80\%$ of this amount.

The business employs two people. The combined annual payroll is $$151,000,$ of

which Retro owes $$7,000$ at year$-$end. At the end of the year, the company paid income

taxes of $$22,000.$

Late in $2021,$ Retro declared and paid cash dividends of $$13,000.$

For equipment, Retro uses the straight$-$line depreciation method, over five years, with

zero residual value. Retro Motors, Inc., was formed on January $1,2021.$ The following transactions occurred during $2021$:

$($i$)($Click the icon to view the transactions.$)$

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Requirement $1.$ Prepar

Requirements

Prepare Retro's income statement for the year ended December $31,2021.$

Use the single$-$step format, with all revenues listed together and all expenses

together.

Prepare Retro's balance sheet at December $31,2021.$

Prepare Retro's statement of cash flows for the year ended December $31,$

Format cash flows from operating activities using the indirect method.

$($Click the icon to view the transactions.$)$

Read the requirements.

Requirement $1.$ Prepare Retro's income statement for the year ended December $31,2021.$ Use the single$-$step format, with all revenues listed together and all expenses together.

Retro Motors, Inc.

Income Statement

Year Ended December $31,2021$

Revenue:

Expenses: