Retro Motors, Inc., was formed on January 1, 2018. The following transactions occurred during 2018: (Click the icon to view the transactions.) Read the requirements. A Requirements 1. Prepare Retro's income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses together. Prepare Retro's balance sheet at December 31, 2018. Prepare Retro's statement of cash flows for the year ended December 31, 2018. Format cash flows from operating activities using the direct method. Print Done More Info On January 1, 2018, Retro issued its common stock for $575,000. Early in January, Retro made the following cash payments: a. $200,000 for equipment b. $324,000 for inventory (nine cars at $36,000 each) c. $24.000 for 2018 rent on a store building In February, Retro purchased four cars for inventory on account. Cost of this inventory was $192,000 ($48,000 each). Before year-end, the company paid off $96,000 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory. During 2018, Retro sold ten autos for a total of $650,000. Before year-end, it had collected 70% of this amount. The business employs six people. The combined annual payroll is $150,000, of which Retro owes $12,000 at year-end. At the end of the year, the company paid income taxes of $13,000. Late in 2018, Retro declared and paid cash dividends of $10,000. For equipment, Retro uses the straight-line depreciation method, over five years, with zero residual value. Print Done Requirement 1. Prepare Retro's income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses together. Retro Motors, Inc. Income Statement Year Ended December 31, 2018 Revenue: Expenses: Requirement 2. Prepare Retro's balance sheet at December 31, 2018. Retro Motors, Inc. Balance Sheet December 31, 2018 Assets Liabilities Current assets: Current liabilities: Stockholders' equity Property, plant, and equipment: Less: Requirement 3. Prepare Retro's statement of cash flows for the year ended December 31, 2018. Format cash flows from operating activities using the direct method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash. Enter "0" for zero balances.) Retro Motors, Inc. Statement of Cash Flows (Direct Method) Year Ended December 31, 2018 Cash flows from operating activities: Cash payments: Total cash payments 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: Net cash provided by (used for) financing activities Net increase (decrease) in cash