The following balance sheet is for Review Co. as of December 31, 2005.

The following information pertains to 2006 (all amounts are in thousands): a. Sales were $3,000, all on account.b. Collections on accounts receivable were $3,100. c. A physical count of inventory found $95 on hand at December 31, 2006. d. On January 1, 2006, Review bought a building for 550 cash. c fated depreciation as of January 1, 2006, of $8. e. On January J, 2006, Review sold machinery for $1.5 that cost $10 and had accumu- F. Review calculates depreciation expense using the straight-line method and an asset life of 10 years for buildings and machinery. g. The senior debt has an interest rate of 696. h. The subordinated debt has an interest rate of 8%.I. Dividends paid totaled $14. J. Wages payable at the end of the year were 17$. K. Wages expense was 557. L. Cash payments for miscellaneous expenses totaled 550. These payments are in addition to any miscellaneous expenses derived from prepaids or liability accounts M. Interest paid by Review was $7. N. Purchases were 52,820, all on account. O. Payments on accounts payable were $2,700. P. The balance of prepaid rent at December 51, 2003, was $30. Q. Additions to prepaid rent totaled $25. R. The beginning balance of other accrued liabilities was paid off in cash. S. Other accrued liabilities at the end of the year. all relating to miscellaneous expenses, amounted to 59. T. Review's tax expense for 2006 was S12. U. Unpaid taxes at December 31, 2006, were 57. Required: 1. In a set of T-accounts, make all entries required under U.S. GAAP 2. Prepare a balance sheet for Decerber 31, 2006. 3. Prepare an income statement for the vear ended December 31, 2006. 4. Prepare a statement of cash flows, using the indirect method, for the year ended De-camber 31. 2006.