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Use the following information to create the financial statements in questions 1-3. Unless otherwise specified, the data given are for the fiscal year 2019 as

Use the following information to create the financial statements in questions 1-3. Unless otherwise specified, the data given are for the fiscal year 2019 as of Dec. 31. Credit will not be given unless complete financial statements are submitted.

Sales revenue: $8,000 Accounts Receivable Dec. 31, 2019: $150
Tax rate: 25% Accounts Payable Dec. 31, 2019: $175
Interest expense: $70 Inventory Dec. 31, 2019: $800
SGA Expenses: $1,300 Total Expenses: $5,200
Other Revenue: $2,000 Accrued Liabilities: $550
R&D Expense: $500 Long-Term Debt: $700
Cash on Dec. 31, 2018: $900 Long-Term Debt Currently Due: $50
Accounts Receivable Dec. 31, 2018: $300 Common Stock: $5,300
Accounts Payable Dec. 31, 2018: $750 Property Plant and Equipment: $1,750
Inventory Dec. 31, 2018: $200 Patents: $475
Cost of Goods Sold: ______ Retained Earnings: ______

1. Create an income statement for the year ended Dec. 31, 2019. To complete the income statement you will need to calculate total revenue, cost of goods sold, pretax income, income tax expense, and net income.

2. Create a statement of cash flows for the year ended Dec. 31, 2019. Remember that changes in certain balance sheet items over the year will affect the cash flow statement.

3. Create a balance sheet for Dec. 31, 2019. You will need to use the accounting equation to calculate retained earnings

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