Stylistic Motors, Inc., was formed on January 1, 2021. The following transactions occurred during 2021: (Click the icon to view the transactions.) Read the Requirements 1. Prepare Stylistic's income statement for the year ended December 31, 2021. Use the single-step format, with all revenues listed together and all expenses together. 2. Prepare Stylistic's balance sheet at December 31,2021. 3. Prepare Stylistic's statement of cash flows for the year ended December 31 , 2021. Format cash flows from operating activities using the indirect method. Stylistic Motors, Inc. Income Statement Year Ended December 31, 2021 Revenue: Expenses: On January 1,2021 , Stylistic issued its common stock for $440,000. Early in January, Stylistic made the following cash payments: a. $180,000 for equipment b. $203,000 for inventory (seven cars at $29,000 each) c. $17,000 for 2021 rent on a store building In February, Stylistic purchased two cars for inventory on account. The cost of this inventory was $80,000 ( $40,000 per car). Before year-end, the company paid off $64,000 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory. During 2021, Stylistic sold eight autos for a total of $488,000. Before year-end, it had collected 40% of this amount. The business employs five people. The combined annual payroll is $125,000, of which Stylistic owes $3,000 at year-end. At the end of the year, the company paid income taxes of $12,600. Late in 2021, Stylistic declared and paid cash dividends of $10,000. For equipment, Stylistic uses the straight-line depreciation method, over five years, with zero residual value. Stylistic Motors, Inc., was formed on January 1, 2021. The following transactions occurred during 2021: (Click the icon to view the transactions.) Read the Requirements 1. Prepare Stylistic's income statement for the year ended December 31, 2021. Use the single-step format, with all revenues listed together and all expenses together. 2. Prepare Stylistic's balance sheet at December 31,2021. 3. Prepare Stylistic's statement of cash flows for the year ended December 31 , 2021. Format cash flows from operating activities using the indirect method. Stylistic Motors, Inc. Income Statement Year Ended December 31, 2021 Revenue: Expenses: On January 1,2021 , Stylistic issued its common stock for $440,000. Early in January, Stylistic made the following cash payments: a. $180,000 for equipment b. $203,000 for inventory (seven cars at $29,000 each) c. $17,000 for 2021 rent on a store building In February, Stylistic purchased two cars for inventory on account. The cost of this inventory was $80,000 ( $40,000 per car). Before year-end, the company paid off $64,000 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory. During 2021, Stylistic sold eight autos for a total of $488,000. Before year-end, it had collected 40% of this amount. The business employs five people. The combined annual payroll is $125,000, of which Stylistic owes $3,000 at year-end. At the end of the year, the company paid income taxes of $12,600. Late in 2021, Stylistic declared and paid cash dividends of $10,000. For equipment, Stylistic uses the straight-line depreciation method, over five years, with zero residual value
