WestCoast Lifestyle Incorporated (WCLI) is an outdoor apparel company that began operations on January 1, 2016. The CEO of WCLI has provided you with the following transactions:

Clothing Division

• On January 1, 2016, a $50,000 bank loan was obtained. The loan was a five-year loan and had an interest rate of 8%. The loan was to be paid back in five equal payments of $12,523 which would be made each year on January 1, starting with January 1, 2017.
• On February 28, 2016, WCLI purchased screen-printing equipment at a cost of $35,000. The equipment was expected to have a ten-year useful life and a residual value of $2,000. At the same time, the company sold some old screen-printing equipment for $5,000. These were the only depreciable assets the company had at the beginning of the year. The old equipment was purchased when the company began operations for $15,000 and no residual value. This equipment also had a ten-year useful life. WCLI uses the straight-line method of depreciation for all of their non-current assets.
• Sales for the year were $680,000 for the year of which $100,000 were credit sales.
• On January 10, 2016, $220,000 worth of inventory was purchased. A $50,000 deposit was paid with the remainder paid on June 01, 2016.
• Cost of goods sold was 30% of sales.
• On June 01, 2016, WCLI purchased 12-months worth of insurance $4,800. The full amount was paid in cash.
• Other operating expenses were $85,000, of which $65,000 were paid in cash upon receipt, the remaining would be paid in January 2017.
• The income tax rate is 30% and all taxes would be paid in March 2017.
• The sole employee was paid $67,000 all of which was paid in 2016.

REQUIRED

Prepare a multi-step income statement and a properly formatted balance sheet for the year ended December 31, 2016, in the space provided below.