AND SO ONSales for the year 2008 were $330000 with cost of goods sold being 60

AND SO ONSales
for the year 2008 were $330000 with cost of goods sold being 60
percent of sales. Selling and administrative expense was $33000.
Depreciation expense was 10 percent of plant and equipment (gross) at
the beginning of the year. Interest expense for the notes payable was 10
percent while interest on the bonds payable was 12 percent. These were
based on December 31 2007 balances. The tax rate averaged 20 percent.Two
thousand dollars in preferred stock dividends were paid and $4100 in
dividends were paid to common stockholders. There were 10000 shares of
common stock outstanding.During the year 2008 the cash balance
and prepaid expenses balance were unchanged. Accounts receivable and
inventory increased by 20 percent. A new machine was purchased on
December 31 2008 at a cost of $60000.Accounts payable
increased by 30 percent. At year-end December 31 2008 notes payable
increased by $10000 and bonds payable decreased by $15000. The common
stock and paid-in capital in excess of par accounts did not change.a. Prepare an income statement for the year 2008.b. Prepare a statement of retained earnings for the year 2008.c. Prepare a balance sheet as of December 31 2008.