There are no other transactions of any kind Ignore income taxes Requirement . Prepare an ending balance sheet plus an income statement for 20X1, 20x2 and 20X3 under (1) absorption St. Germaine Company began business on January 1, 200X1, with assets of $157,000 cash and equities of 157,000 capital stock. In 20X1, t manufactured some inventory at a cost of $56,000 cash, including $15,000 for factory rent and other foced factory overhead In 200X2, it manufactured nothing and sold half of its inventory for 47 000 cash In 2033 it manudactued nothing and sold the remaining half for another $47 000 cash It had no costing and (2) variable costing (direct costing) Explain the differences in net income between absorption and variable costing