Year 1: 1. Issues 20 shares of stock at $12 per share in cash. 2. Takes a loan for $350 in cash. The interest rate is 10% per year of the beginning balance. 3. Buys PP&E for $140 in cash. The PPBE has a useful life of three years and a salvage value of $50. It is depreciated on a straight-line basis. It is not used for manufacturing. . Buys inventory for $139 in cash. . Buys inventory of $27? on credit. . Prepays $99 in insurance for two years. The insurance expense is booked at the end of each year. . Books cash sales of $150. [COGS is booked later at the end of the year.] . Books credit sales of $400. [COGS is booked later at the end of the year. ] R.eceives $340 in cash as an advance from customers. 10. Pays $135 to employees as salary for the year. This is not related to manufacturing. 11. Employees earn a bonus of $45 for their work in Y1. The bonus is paid in cash in Y2. 12. The cost of goods sold for the year is $192. 13. Books depreciation expense for the year. 14. Books insurance expense for the year. 15. Books interest expense for the loan. Assume that the interest is paid in cash. Interest is 10% of the beginning balance. 16. Repays $100 of the loan principal. 1?. Pays a cash dividend of 50 cents per share. 18. Buys back 10 shares of stock at the same price at which they were originally issued. Year 2: 1. Collecl: receivables from the prior year in full. . Delivers goods and books revenues for advances received in the prior year in full. . Pays bonuses due from the prior year in full. . Pays amounts due to suppliers from the prior year in full. . Books cash sales of $260. . Books credit sales of $39!]. . Receive new advances of $143. . Pays $111] to employees as salary for the year. This is not related to manufacturing. .Employees earn a bonus of $39 for their work' In Y2. The bonus is paid in cash in Y3. 1D. The cost of goods sold for the year is $202. 11. Books depreciation expense for the year. 12. Books insurance expense for the year. 13. Prepays $55 for insurance for Year 3. 14. Books interest expense for the loan. Assume that the interest is paid in cash. Interest is 10% of the beginning balance. 15. Repays $2110 of the loan principal. 16. Pays a cash dividend of 50 cenls per share. Make sure that you use the correct share oount. 1?. Buys back 10 shares of stock at the same price at which they were originally issued. 18. Buys inventory of $193 on credit. mmwmm-h-wm Year 3: 1. Collects receivables from the prior year in full. 2. Delivers goods and books revenues for advances received in the prior year in full. 3. Pays bonuses due from the prior year in full. 4. Pays amounts due to suppliers from the prior year in full. 5. Books cash sales of $760. 6. Pays employees $70 as salary for Year 3. 7. Books the remaining inventory as COGS. 8. Books insurance expense. 9. Books depreciation expense. 10. Sells its entire PP&E for $57 in cash. 11. Books interest expense for the loan. Assume that the interest is paid in cash. Interest is 10% of the beginning balance. 12. Repays loan in full. 13. Pays dividends of 40 cents per share. Make sure that you correct share count.Ending Balance Sheet Year 1 Year 3 (Three) Cash Receivables Inventories Prepayments Gross PP&E Accumulated depreciation [Positive number. Subtract while computing total assets] Accounts payables Accrued expenses Deferred revenues Debt Paid-in capital Retained earningsIncome Statement Sales COGS [Positive number] SG&A expenses [Positive number] Depreciation [Positive number] Gains (losses) [Gain: Positive; loss: negative] Interest expense [Positive number]Indirect Cash Flow Statement Adjustments for [Put minus sign (-) before a number to be subtracted] (Change) in gross receivables (Change) in inventories (Change) in prepaid insurance Depreciation Change in accounts payables Change in accrued salaries Change in deferred revenues (Gain) loss on sale of PP&E (Capital expenditure) Proceeds from sales of PP&E Proceeds from debt (Repayment of debt) Capital contributions Capital (distributions) Dividend (distributions)Direct Operating Cash Flow Statement Cash received from customers Cash (paid) to suppliers [Negative number] Operating (payments) [Negative number] Cash (paid) for interest [Negative number]