Develop an income statement for 2012, cash flow statement for. 2012, and balance sheet as of the end 2012 based on the data provided below for year 2012. All sales are collected when the sales is made and all expenses are paid when the expense is incurred. Explain the purpose of each financial statement.

a. Income statement data for 2012:

1. Units produced and sold - 420

2. Sales (8o per unit selling price) - $33600

3. Cost of goods sold ($ 30 per unit, all variable costs) - $12,600

4. Advertising fees - $2000

5. Bank fees - $150

6. Phone - $1200

7. Shipping - ($3 per unit) - $1260

8. Utilities - $900

9. Office Supplies - $800

10. Interest expense on note payable - $350

11. Depreciation. - $800

12. Income tax - 26%

b. other financial data for 2012:

1. proceeds from sale of equipment - $3000. The equipment originally cost $1000 and had accumulated depreciation of $200.

2. The purchase of equipment - $1600( The machine is purchased on the last day of 2012 so no depreciation expense is recorded).

3. Repayment of note payable - $5000

consider any payment relevant from the income statement.

c. Balance sheet data for the beginning of 2012:

1. Cash and cash equivalent - $1000

2. Accounts receivable - 0( Cash was received at time of sale)

3. Raw materials investory - $10,500

4. Equipment- $5000 (This includes the $1000 cost of equipment sold in 2012)

5. Accumulated depreciation - $1000( This includes the accumulated depreciation of 200 for the equipment sold in 2012.

6. Accounts payable - $0.( Cash is paid at the time of purchase)

7. Note payable - 5000( this is the note payable which is repaid in 2012)

8. Coomon stock - $15000

Retained earnings - $4500.