TF10:33 9A3B @ 93% TO + 2. he following is given for the first year of business. Smart Mail, Inc. For the Year Ending December 31, Year 1 Cash Receipts from Sales of Merchandise $26,000 Cash Expenditures for Merchandise and Services Merchandise $9,000 Salaries 5,000 Rent 7,000 7 16 At year-end, the firm had inventory with a cost of $2,000 remaining. Also, customers owed $2,000 for goods that had already been delivered. The utilities for December were $600 and were billed to but not yet paid by the company. The rent of $3,500 for January, Year 2, was paid in December, Year 1. Required: Prepare an income statement for the year. (6 points)