Simpson Ltd. (Simpson) imports novelty items from Asian manufacturers and sells them to retailers. The company began operations atthe beginning of 2018. The following information is available about Simpson's operation: Simpson's suppliers allow it 30 days to pay for purchases. Assume purchases are made evenly throughout the year. Simpson allows customers 60 days to pay for their purchases. Assume sales occur evenly throughout the year. Simpson has a markup on its product of 100 percent. (lf a customer purchases merchandise that costs Simpson $1 the customer pays $2.) Operating costs, other than the cost of product sold, are $175,000 per quarter. These costs are paid in cash during the quarter. Simpson began operations with $275,000 in cash contributed by its shareholders. Quarterly information for 2018 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total $375,000 405,000 $540,000 $535,000 1,855,000 Sales Inventory purchases $390,000 178,200 $275,400 $299,600 1,143,200 Required: a. Prepare income statements for each quarter of 2018 and for the entire year. (Hint Use the fact that Simpson has a 100 percent markup to calculate cost of goods sold.) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Sales Cost of goods sold Other Net income