Please, I need help correcting the error. Checkmack indicate it correct and x means it wrong.

[The following information applies to the questions displayed below.] Jeremy Slacker started the Del Fuego Surf Shop on January 1 after determining that business school classes conflicted with his preferred activity. He Invested $60,000 in the shop-$42,700 of his own savings and $30,000 borrowed from an acquaintance. The loan is to be repald in 5 years. Jeremy will pay the lender annual Interest at a rate of 8 percent. Shortly after opening, Jeremy realized that he is not the best financial planner and has come to you for help. With some prodding, you are able to establish that Jeremy plans to sell only two models of surfboard, the Zuma and the Coronado, for at least the first year. Data on the boards are given as follows. Zuma 720 Coronado 360 Expected annual sales (units) Retail price (per unit) Purchase cost (per unit) $480 $700 320 45e Additional Information on the planned operations for the year Includes the following. 1. Equipment costing $50,000 was purchased for cash when the store opened. The equipment will be depreciated over five years using straight-line depreciation. 2. Because of the fantastic weather in Del Fuego, Jeremy expects sales to occur uniformly over the year. Sales will be both for cash (60 percent) and on account (40 percent). Sales on account are assumed to be collected in two months. 3. Jeremy will maintain Inventory equal to one-half of a month's sales. All boards will be purchased from the manufacturer on credit with payment made one month after purchase. 4. Annual cash selling, general, and administrative expenses are $25,000 fixed plus 10 percent of revenues. 5. Jeremy's tax rate is 40 percent Required: a. Prepare an Income statement for the year based on the data and assumptions available. b. Prepare the year-end (December 31) balance sheet based on the data and assumptions available. Required A Required B Prepare an income statement for the year based on the data and assumptions available. Del Fuego Surf Shop Budgeted Income Statement For the Year Zuma Coronado Total Revenue S 288,000 $ 252,000 $ 540,000 Cost of sales 230.400 162.000 392,400 Gross margin S 57,600 S 90.000 IS 147.600 Less other costs: Depreciation 10,000 SG&A (fixed) 25,000 Interest expense 2.400 SG&A (variable) 54,000 OOOO Operating income IS 56,200 Income tax 22.480 33.720 Net income $ Prepare the year-end (December 31) balance sheet based on the data and assumptions available. Del Fuego Surf Shop Budgeted Balance Sheet December 31 Assets Cash $ Accounts receivable Inventory 42,133 x 36,000 16,350 IS 94,483 > 50,000 10,000 Current assets Equipment Less: Accumulated depreciation Total assets Liabilities and Net Worth Accounts payable Long-term debt 40.000 134,483 $ s . 32,700 24,000 X O $ 56,700 Total liabilities Contributed capital Retained earnings 42,700 33,720 Total net worth Total liabilities and net worth 76,420 133, 120