The following financial statements are for Troi Company. Consider the following additional information:
(a) All accounts payable relate to inventory purchases.
(b) Property, plant, and equipment sold had an original cost of $75,000 and a book value of $22,000.

Instructions:
Prepare the income statement for Troi Company for the year ended December 31,2011.

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Troi Company Comparative Balance Sheet December 31, 2011 and 2010 2011 2010 Assets Cash Accounts receivable inventory Prepaid general expenses Property, plant, and equipment $4,000 25,000 30,000 5,700 305,000 $ 3.400 18,000 34,000 5,000 320,000 (103,500) (128900) 40,000 291.500 Patent 36,000 Total assets 302,200 2011 2010 Liabilities and Stockholders' Equity Accounts payable Wages payable Interest payable Dividends payable Income taxes payable Bonds payable Common stock Retained earnings 25,000 2,000 2,800 14,000 1,600 00,000 50,000 96,800 $302,200 $22,000 0.300 4,000 ,200 20,000 50,000 84,000 $291,500 Total liabilities and stockholders' equity Troi Company Statement of Cash Flows For the Year Ended December 31, 2011 Cash flows from operating activities: Cash collected from customers ~__... Cash payments for. $685,300 $300,000 102.000 150,000 1,000 23,900 Inventory purchases General expenses Wages expense Interest expense 586,900 $98.400 Income tax expense Net cash provided by operating activities Cash flows from investing activities: Sale of property, plant, and equipment Purchase of property, plant, and equipment Net cash used in investing activities 27.200 (60,000) (32.800) Cash flows from financing activities: Retirement of bonds payable Payment of dividends Net cash used in financing activities (23.000) (42000) Net increase in cash Cash at beginning of year Cash at end of year (65,000) S 600 3.400 $ 4,000