The following is information for ABC- a publicly traded company Condensed Balance Sheet at end of 2019 (amounts in thousands) Income Statement for 2019 Statement of Comprehensive Income Current Assets 2019 Cash $ 4,650 Sales $ 265,320 Net Income $ 4 8,967 48967-2323 + 488 Accounts Receivable $ 18,260 Cost of Goods Sold $ 148,290 Other Comprehensive Income Inventory $ 21,275 Gross Profit $ 117,030 Unrealized Gain on Prepaid insurance $ 5,700 5700-1900 AFS Debt Securities $ 158 Total Current Assets $ 49,885 Wages Expense $ 23,450 Income Tax Effect $ (33) Property, Plant and Equipment $ 311,000 Depreciation Expense $ 15,220 15220+423 Total Other Comprehensive Inco$m e 125 Accumulated Depreciation $ (103,500) 103500+1481Amortization Expense $ 1,500 Patent $ 36,000 Insurance Expense $ 767 Comprehensive Income $ 4 9,125 49125-2323 + 488 AFS Debt Securities $ 2,100 Interest Expense $ 10,150 Total Assets $ 295,485 Other Expense $ 3,960 3960+1900 Current Liabilities Total Expenses $ 55,047 Accounts Payable $ 24,912 Income before Taxes $ 61,983 61983-2323 Interest Payable $ 950 Income Tax Expense $ 13,016 13016 - (2323 x .21) = 488 Wages Payable $ 1,085 Net Income $ 48,967 48967-2323 +488 Unearned Revenue $ 1,600 Total Current Liabilities $ 28,547 Earnings Per Share $ 4 .90 48967-2323+ 488/10000 Note Payable $ 114,000 Bond Payable in 2021 $ 30,000 Statement of Changes in Stockholders Equity - 2019 Equity Common Stock ($1 par, 10,000 shares issu$e d ) 10,000 CS APIC RE AOCI APIC $ 20,800 Beginning $ 10,000 $ 20,800 $ 47,468 $ ( 422) Retained Earnings $ 92,435 92435 - 3381Total OCI $ 125 Accumulated Other Comprehensive Loss $ (297) Net Income $ 48,967 48967-2323+488 Liabilities and Equity $ 295,485 Dividends $ (4,000) Ending Balance $ 10,000 $ 20,800 $ 92,435 $ ( 297) Results for 2020 Sales $ 281,300 All sales on credit Inventory Purchases on credit = 191,400 and ending inventory $56200 Depreciation expense $ 16,000 not including assets sold, bought or found Patent purchased in 2018 and determined to have remaining useful life of 12 years in 2020 Wages Expense $ 27,450 Paid in cash $ 2,194 owed at end of 2020 Insurance policy indicates that $5,700 was paid in May 2019 for 24 month coverage starting May 1 2019. During 2020 found an asset purchased and recorded in 2016 that had not been depreciated - cost 4,230 no salvage 10 year useful life Sold AFS Debt Securities that cost 400 for 390 in cash ($7 loss in AOCI recorded previously) Sold equipment that cost 3,000 with accumulated depreciation of 2,690 for $200 in cash. Purchased new equipment costing $6,975 with $2,000 down payment and 10% note payable on December 1, 2020 (first payment due January 1, 2021) 10 year useful life and no salvage Collections on A/R = 275,320Payments on A/P = 176,500 - all accounts payable deal with inventory All service agreements sold to customers in 2019 completed in 2020. New service agreements sold for $2460 in cash during 2020 - 40 percent of the services provided during 2020 Bond terms - interest only for 6.5% paid annually on September 1. Firm agreement with a bank signed on December 15 to refinance bond to a 5 year note in 2021 Note Payable - 4 payments of $3,300 made March 30, June 30, Sept 30 and December 31 interest of 8% per year (2% per quarter) Each note payment pays the interest since the last payment with any remaining amount going toward principle Fair value of remaining AFS Debt Securities $1,400 Other Information Tax rate is 21% (unlike 2019 income taxes have not been paid) Half year convention for depreciation Required: 1. Show journal entries or T accounts for results of 2020 operations. 2. Create an income statement including taxes and required EPS disclosures for 2020. 3. Create a statement of comprehensive income for 2020 4. Create a statement of changes in stockholders equity for 2020 5. Create a balance sheet for the end of 2020. 6. Create a cash flow statement for 2020 using the indirect method. 7. Show any necessary disclosures for 2019 that would be needed if both 2019 and 2020 were to be reported