Chapter $4$: Financial Statement Preparation for Mr$.$ and Mrs$.$ ThompsonMr. and Mrs$.$ Thompson are a young couple with two childrenThomas $($age $6)$ and Trista $($age $3).$ Mr$.$ Thompson, $35$ years old, is employed as a Chemical Engineer, while Mrs$.$ Thompson, $32$ years old, works as an Accountant. They are actively engaged in their financial planning and have provided their financial details for $2024,$ including assets, liabilities, income, and expenses.Your task is to prepare both an Income Statement and a Balance Sheet for Mr$.$ and Mrs$.$ Thompson based on the given financial data.Items $ Amount Federal Income Taxes Withheld $ $12,000$ Furniture, Clothing $($value$)$ $ $130,000$ State Income Taxes Withheld $ $3,500$ Life Insurance Premiums $ $800$ Salary Husband $ $45,000$ Salary Wife $ $85,000401($k$)$ Plan savings $ $65,000401$K Contribution $ $6,000$ IRA savings $ $50,000$ IRA Contribution $ $4,000$ Education Savings $(529$ Plan$)$ $ $65,000$ Education Savings $(529$ Plan$)$ Contribution $ $10,000$ Personal Residence $($mortgage$)$ $ $30,000$ Personal Residence $ $400,000$ HO Personal Residence Premium $ $4,000$ Auto Husband $($value$)$ $ $22,000$ Auto Wife $($value$)$ $ $35,000$ Auto Husband loan payment $ $4,000$ Auto Wife loan payment $ $5,000$ Student loan $ $150,000$ Student Loans payment $ $3,000$ Utilities $ $4,000$ Money Market $ $40,000$ Gasoline for Autos $ $2,000$ Lawn Service $ $1,200$ Checking account $ $2,000$ Entertainment $ $3,800$ Vacations $ $4,000$ CD Maturing in $6$ months $ $30,000$ Church Donations $ $1,000$ Brokerage Account $ $400,000$ Food $ $8,500$ Auto Maintenance $ $1,500$ Credit card outstanding $ $3,500$ Telephone expenses $ $1,500$ Clothing expenses $ $3,000$ Personal Residence Loan outstanding $ $30,000$ Auto Premiums $ $2,500$ Auto Loan outstanding $-$ Husband $ $4,000$ Auto Loan outstanding$-$ Wife $ $6,500$ Personal Liability Umbrella Premium $ $400$ Social Security Taxes $ $9,500$ Property Tax Personal Residence $ $3,800$ Cash and Cash Equivalents $ $3,500$ InstructionsTask $1$: Create an Income Statement $(10$ points$)$Use the provided financial items to create a detailed Income Statement for Mr$.$ and Mrs$.$ Thompson for the year $2024.$Task $2$: Create a Balance Sheet $(10$ points$)$Use the provided financial items to create a detailed Balance Sheet for Mr$.$ and Mrs$.$ Thompson as of the end of the year $20224.$Task $3$: Answer the following: $(5$ points$)1.$ Their total Assets are: $$\_\_\_\_\_\_\_\_\_\_\_2.$ Their total Liabilities are: $ $\_\_\_\_\_\_\_\_\_\_\_3.$ Their total Cash Inflows are: $ $\_\_\_\_\_\_\_\_\_\_\_\_\_\_4.$ Total Cash outflows are: $ $\_\_\_\_\_\_\_\_\_\_\_\_\_\_5.$ Net Discretionary Cash Flow is: $ $\_\_\_\_\_\_\_\_\_\_\_\_\_\_$