Speedy Motors, Inc., was formed on January 1, 2018. The following transactions occurred during 2018: A (Click the icon to view the transactions.) More Info Read the requirements. Requirement 1. Prepare Speedy's income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses together. Speedy Motors, Inc. Income Statement Year Ended December 31, 2018 Requirements - X Revenue: On January 1, 2018, Speedy issued its common stock for $575,000. Early in January, Speedy 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, Speedy 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 $134,400 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory. During 2018, Speedy sold ten autos for a total of $650,000. Before year-end, it had collected 80% of this amount. The business employs six people. The combined annual payroll is $150,000, of which Speedy owes $3,000 at year-end. At the end of the year, the company paid income taxes of $13,000. Late in 2018, Speedy declared and paid cash dividends of $14,000. For equipment, Speedy uses the straight-line depreciation method, over five years, with zero residual value. Expenses: 1. Prepare Speedy's income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses together. 2. Prepare Speedy's balance sheet at December 31, 2018. 3. Prepare Speedy's statement of cash flows for the year ended December 31, 2018. Format cash flows from operating activities using the indirect method. Print Done Print Done Requirement 2. Prepare Speedy's balance sheet at December 31, 2018. Speedy Motors, Inc. Balance Sheet December 31, 2018 Assets Liabilities Current assets: Current liabilities: Stockholders' equity Property, plant, and equipment: Less: Requirement 3. Prepare Speedy's statement of cash flows for the year ended December 31, 2018. Format cash flows from operating activities using the indirect method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash. Enter "O" for zero balances.) Speedy Motors, Inc. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by (used for) operating activities: 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