The following information is taken from the 2017 annual report ofIvanhoe, Inc.Ivanhoe's fiscal year ends December 31 of each year.Ivanhoe's December 31, 2017, balance sheet is as follows.

Ivanhoe, Inc.

Balance Sheet

December 31, 2017

Assets

Cash$450

Inventory1,900

Total current assets2,350

Plant and equipment2,100

Accumulated depreciation(168)

Total assets4,282

Liabilities

Bonds payable (net of discount)$1,426

Stockholders' equity

Common stock1,500

Retained earnings1,356

Total liabilities and stockholders' equity$4,282

Note X: Long Term Debt:

On January 1, 2016,Ivanhoeissued bonds with face value of $1,500and a coupon rate equal to 10%. The bonds were issued to yield 12% and mature on January 1, 2021.

Additional information concerning 2018 is as follows.

1.Sales were $3,700, all for cash.

2.Purchases were $2,000, all paid in cash.

3.Salaries were $720, all paid in cash.

4.Property, plant, and equipment was originally purchased for $2,100and is depreciated straight-line over a 25-year life with no salvage value.

5.Ending inventory was $2,100.

6.Cash dividends of $100were declared and paid byIvanhoe.

7.Ignore taxes.

8.The market rate of interest on bonds of similar risk was 12% during all of 2018.

9.Interest on the bonds is paid semiannually each June 30 and December 31.

Prepare an income statement for the year ending December 31, 2018. Assume semiannual compounding of the bond interest.

IVANHOE, INC.

Income Statement

December 31, 2018

For the Year Ended December 31, 2018

For the Quarter Ended December 31, 2018

$

Income From Operations

Expenses

Profit Before Income Tax

Total Expenses

Total Revenues

Net Income/(Loss)

Revenues

$

Expenses

Profit Before Income Tax

Total Expenses

Income From Operations

Revenues

Net Income/(Loss)

Total Revenues

Profit Before Income Tax

Net Income/(Loss)

Income From Operations

Total Expenses

Total Revenues

Expenses

Revenues

$