Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the companys accountant obtains the necessary information to prepare accrual basis financial statements. The following cash flows occurred during the year ended December 31, 2021:

Additional information:

1. On March 31, 2020, Zambrano lent a customer $54,000. Interest at 9% is payable annually on each March 31. Principal is due in 2024.
2. The annual insurance payment is paid in advance on April 30. The policy period begins on May 1.
3. On October 31, 2021, Zambrano borrowed $120,000 from a local bank and signed a note promising repayment. Principal and interest at 6% are due on October 31, 2022.
4. Annual rent on the companys facilities is paid in advance on June 30. The rental period begins on July 1.

Required:

1. Prepare an accrual basis income statement for 2021 (ignore income taxes). (Please calculate ONLY the Cost of Goods Sold)

$695,000 4,860 120,000 $819,860 Cash receipts: From customers Interest on note Loan from a local bank Total cash receipts Cash disbursements: Purchase of merchandise Annual insurance payment Payment of salaries Dividends paid to shareholders Annual rent payment Total cash disbursements $394,000 6,480 214,000 11,000 26,000 $651,480 Selected balance sheet information: Cash Accounts receivable Inventory Prepaid insurance Prepaid rent Interest receivable Note receivable Equipment Accumulated depreciation Accounts payable (for merchandise) Salaries payable Notes payable 12/31/2020 12/31/2021 $ 27,000 $195,380 64,000 96,000 84,000 64,000 2,900 11,400 3,645 54,000 54,000 120,000 120,000 (42,000) (54,000) 112,000 126,000 20,400 24,800 120,000 Interest payable Additional information: 1. On March 31, 2020, Zambrano lent a customer $54,000. Interest at 9% is payable annually on each March 31. Principal is due in 2024. 2. The annual insurance payment is paid in advance on April 30. The policy period begins on May 1. 3. On October 31, 2021, Zambrano borrowed $120,000 from a local bank and signed a note promising repayment. Principal and interest at 6% are due on October 31, 2022. 4. Annual rent on the company's facilities is paid in advance on June 30. The rental period begins on July 1. Prepare an accrual basis income statement for 2021 (ignore income taxes). (Other expenses should be indicated with a minus sign.) $ ZAMBRANO WHOLESALE CORPORATION Income Statement For the Year Ended December 31, 2021 Sales revenue Cost of goods sold Gross profit Operating expenses Insurance expense 7,220 Salaries expense 218,400 Rent expense 24,400 Depreciation expense 12,000 727,000 388,000 339,000 Total operating expenses 262,020 76,980 Operating income Other income (expense) Interest revenue Interest expense 4,860 (1,200) 3,660 80,640 Net income $