Anibonita Company began operations in 2007. It sells goods on installment sales contracts; these transactions are considered to be exceptional, so it uses the installment method to recognize gross profit. The following is a summary of the installment sales, costs of installment sales, operating expenses, and collections for 2007 and 2008:

Required
Using the installment method to recognize gross profits, prepare 2007 and 2008 condensed income statements for the AnibonitaCompany.

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Installment method sales Costs of installment method sales Operating expenses Cash collections from 2007 $80,000 52,000 13,000 2008 $90,000 59,400 15,000 2007 installment method sales 2008 installment method sales 42,000 21,000 41,000