Retro Motors, Inc., was formed on January 1, 2021. The following transactions occurred during 2021: (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. Requirements On January 1, 2021, Retro issued its common stock for $350,000. Early in January, Retro made the following cash payments: 1. Prepare Retro's income statement for the year ended December 31, 2021. a. $150,000 for equipment b. $125,000 for inventory (five cars at $25,000 each) Use the single-step format, with all revenues listed together and all expenses c. $25,000 for 2021 rent on a store building together. 2. Prepare Retro's balance sheet at December 31,2021. In February, Retro purchased six cars for inventory on account. The cost of this 3. Prepare Retro's statement of cash flows for the year ended December 31, inventory was $282,000 ( $47,000 per car). Before year-end, the company paid off 2021. Format cash flows from operating activities using the indirect method. $197,400 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory. During 2021, Retro sold six autos for a total of $426,000. Before year-end, it had collected 80% of this amount. The business employs three people. The combined annual payroll is $90,000, of which Retro owes $6,000 at year-end. At the end of the year, the company paid income taxes of $14,000. Late in 2021, 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