Financial Statements: Develop an Income Statement, Cash Flow Statement, and Balance Sheet based on the provided data for year 20XX (the previous year) that follows. Explain the purpose of each financial statement.Income Statement Data for 20XX:
Gross Sales = $33,291
Coupons and Discounts = $549
Cost of Goods = $10,276
Labor = $0 (Mr. and Mr. Lee were the only ones working and did not pay themselves)
advertising fees =$2000
bank fees = $120
phone/internet = $1200
shipping = $1380
utilities = $900
office supplies = $785
Income tax = 26 %
Cash Flow Statement Data for 20XX:
Cash in bank = $21,120
Depreciation = $800
Proceeds from disposal of investment = $3,000
Capital Expenditure = -$1,600
Repayment of Bank Loan = -$5,000
Interest Expense Associated with Bank Loan = -$345
Consider any data relevant from the income statement.
Balance Sheet Data for 20XX:
Cash = $21,120
Accounts Receivable = $496
Accounts Payable = $200
Inventory = $10,507
Accumulated Depreciation = -$1,000
Common Stock = $0