Use the Klaben Motors, Inc

Use the Klaben Motors, Inc., data from P12-58A. In P12-58A. Klaben Motors, Inc., was formed on January 1, 2016. The following transactions occurred during 2016: On January 1, 2016, Klaben issued its common stock for $510,000. Early in January, Klaben made the following cash payments: a. $220,000 for equipment b. $243,000 for inventory (nine cars at $27,000 each) c. $25,000 for 2016 rent on a store building In February, Klaben purchased three cars for inventory on account. Cost of this inventory was $ 117.000 ($39,000 each). Before year-end, Klaben paid $70,200 of this debt. The company uses the first-in, first-out (FIFO) method to account for inventory. During 2016, Klaben sold 11 autos for a total of $649,000. Before year-end, it had collected 80% of this amount. The business employs two people. The combined annual payroll is $151,000, of which Klaben owes $1,000 at year-end. At the end of the year, Klaben paid income tax of $22,000. Late in 2016, Klaben declared and paid cash dividends of $ 11,000. For equipment, Klaben uses the straight-line depreciation method, over five years, with zero residual value. Requirements 1. Prepare Klaben s income statement for the year ended December 31, 2016. Use the single-step format, with all revenues listed together and all expenses together. 2. Prepare Klaben s balance sheet at December 31, 2016. 3. Prepare Klaben s statement of cash flows for the year ended December 31, 2016. Format cash flows from operating