Question 3 During 2021, Gus Ltd performed services for which customers paid or promised to pay $306,000. Of this amount, $275,000 had been collected by year end. Gus paid $128,000 in cash for employee wages and owed the employees $5,000 at the end of the year for work that had been done but had not paid for. Gus paid interest expense of $2,200 and $70,000 for other service expenses. The income tax rate for 2021 is 10%, and income taxes had not yet been paid at the end of the year. Gus Ltd declared and paid dividends of $6,000. There were no other events that affected cash. Required: 1. What was the amount of the increase or decrease in cash during the year? 2. Prepare a single step income statement for Gus Ltd for the year. 3. At the start of 2021, Gus Ltd reported retained earnings totaling $510,000. Prepare a statement of retained earnings.