The following information applies to the questions displayed below.$]$

Assume that you are the president of Highlight Construction Company. At the end of the first year of operations $($December $31),$ the following financial data for the company are available:

Cash $ $25,600$

Receivables from customers $($all considered collectible$)10,800$

Inventory of merchandise $($based on physical count and priced at cost$)81,000$

Equipment owned, at cost less used portion $42,000$

Accounts payable owed to suppliers $46,140$

Salary payable $($on December $31,$ this was owed to an employee who will be paid on January $10)2,520$

Total sales revenue $128,400$

Expenses, including the cost of the merchandise sold $($excluding income taxes$)80,200$

Income tax expense at $30\%\backslash$times pretax income; all paid during the current year $?$

Common stock $($December $31)87,000$

Dividends declared and paid during the current year $10,000$

$($Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.$)$

Required:

$1.$ Prepare a summarized income statement for the year.