P2-56B PREPARE INCOME STATEMENTS (Learning Objective 5) Part One: In 2019, Lindsey Tapia opened Lindsey's Pets, a small retail shop selling pet supplies. On December 31, 2019, her accounting records show the following: Inventory on December 31, 2019.... $ 9,400 Inventory on January 1, 2019.............."; 12,200 Sales revenue.... 55,000 Utilities for shop... 1,500 Rent for Shop...................... 3,400 Sales commissions....... 4, 100 Purchases of merchandise.. 34,500 Requirement Prepare an income statement for Lindsey's Pets, a merchandiser, for the year ended December 31, 2019.JUD Part Two: Lindsey's Pets succeeded so well that Lindsey decided to manufacture her own brand of pet toysBest Friends Manufacturing. At the end of December 2020, her accounting records show the following: Work in process inventory. December 31. 2020 ..................... $ 4000 Finished goods inventory, December 31, 2019 0 Finished goods inventory, December 31, 2020 ...................... 3.000 Sales revenue 103.000 Customer service hotline expense ......................................... 1.400 Utilities for plant 4.500 Delivery expense ................................................................... 2.500 Sales salaries expense 4.200 Plant janitorial services .......................................................... 1.150 Direct labour 20.000 Direct material purchases ...................................................... 39.000 Rent on manufacturing plant 3.400 Raw materials inventory. December 31, 2019 ....................... 10.000 Raw materials inventory. December 31, 2020 3.000 Work in process inventory. December 31. 2019 .................... 0 Requirements 1. Prepare a schedule of cost of goods manufactured for Best Friends Manufacturing for the year ended December 31, 2020. 2. Prepare an income statement for Best Friends Manufacturing for the year ended December 31. 2020. 3. How does the format of the income statement for Best Friends Manufacturing differ from the income statement of Lindsey's Pets? Part Three: Show the ending inventories that would appear on these balance sheets: 1. Lindsey's Pets at December 31, 2019. 2. Best Friends Manufacturing at December 31, 2020