Using the following information for Smolira Golf Corporation, prepare an income statement for 2007 and balance sheet for 2006 and 2007. Make sare you use the financial statement headings and that your accounting equation balances. proper Smlira Gole Lorp Part 1 2007 sales $285,760 2007 depreciation expense 21,950 ta:un,sw.s205, eprcciahan: s 81,0s0 2006/2007 PPE 168,326/184,735 nks Paid: 9,814s 2007 CGS 205,132 2006/2007 retained carsings 83,135/98,857 Toyooit nme:48,8os 2006/2007 accounts payable 16,215/17,318 TabLs5%) 2006/2007 cash 18,270/22,150 /14,451 Dividees ; ,000 2006/2007 inventory 21,584/24,876 2006/2007 accounts receivable 12,315/13,865 2006/2007 long-term debe 80,000/85,000 2006/2007 notes payable 8,000/10,000 2007 earnings before interest and taxes 58,678 2007 tax rate 35% 2007 taxable income 48,803 2007 interest paid 9,875 Note: Dividends were paid in 2007 for $18,000 and additions to retained earnings for the same period were $13,722, but do not have to be included in the balance sheet or income statement. Part 2 After you have completed an income statement and balance sheet, place an up-arrow or down-arrow by each line item indicating the proper direction to follow to maximize financial gains from a theoretical perspective