The financial statements of Barca Company are presented below: Comparative Balance Sheets December 2022 [End] December 2021 [Beg] Cash $ 3,000 $ 3,960 A/R 20,520 21,600 Inventory 36,840 35,400 Land 40,320 30,000 Building and equipment, net 117,000 109,440 Totals $217,680 $200,400 A/P $ 19,560 $ 19,200 Unearned revenue 11,880 13,200 Deferred tax liability 12,000 11,280 B/P 60,000 60,000 1 Discount on B/P (7,920) (8,400) C/S 102,000 96,000 R/E 20,160 9,120 Totals $217,680 $200,400 2022 Cash Flow Statement Cash collections from customers $363,360 Cash disbursements for: Commissions 4,080 Purchases 304,275 Interest 4,800 Taxes 11,565 Total disbursements 324,720 CFO $38,640 Investing: Disposition of equipment 6,840 Acquisition of land (10,320) Acquisition of BBE (31,320) CFI (34,800) Financing Issue of C/S 6,000 Cash Dividends (10,800) CFF (4,800) TCF $(960) Additional information Equipment with a cost of $7,560 and a book value of $4,800 was sold for $6,840. Cash dividends were paid in 2022. The tax rate is 36%. Required: a. Prepare the income statement for 2022. (20 marks) Explicitly show how you calculated Sales revenue, CGS, and depreciation expense. 2 Write your answers in the I/S template. 2022 Income Statement Sales revenue $? CGS ? Depreciation expense ? Sales commission (all cash) ? Interest expense ? Gain on sale of equipment ? Income before taxes ? Income tax expense(36%) ? Net income $? b. Compute FCF using the formula