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

On January $1,2021,$ Retro issued its common stock for $$430,000.$ Early in January,

Retro made the following cash payments:

a$.$ $$160,000$ for equipment

b$.$ $$234,000$ for inventory $($six cars at $$39,000$ each$)$

c$.$ $$18,000$ for $2021$ rent on a store building

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

inventory was $$192,000($ $$48,000$ per car$).$ Before year$-$end, the company paid off

$$153,600$ of this debt. The company uses the first$-$in$,$ first$-$out $($FIFO$)$ method to account

for its inventory.

During $2021,$ Retro sold seven autos for a total of $$504,000.$ Before year$-$end, it had

collected $70\%$ of this amount.

The business employs two people. The combined annual payroll is $$60,000,$ of which

Retro owes $$2,000$ 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. 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: