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  3. sales for 2022 were $220,000, with cost of goods s

Sales for 2022 were $220,000, with cost of goods sold being 60 percent of sales....

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Accounting

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Sales for 2022 were $220,000, with cost of goods sold being 60 percent of sales. Amortization expense was 10 percent of plant and equipment (net) at the beginning of the year. Interest expense for the bonds payable was 8 percent, while interest on the notes payable was 10 percent. These are based on December 31, 2022, balances. Selling and administrative expenses were $22,000, and the tax rate averaged 18 percent. During 2022, the prepaid expense balance was unchanged. Accounts receivable and inventory each increased by 10 percent, and accounts payable increased by 25 percent. A new machine was purchased on December 31,2022 , at a cost of $35,000. A cash dividend of $12,800 was paid to common shareholders at the end of 2022 . Also, notes payable increised by $6,000 and bonds payable deereased by $10,000. The common stock account did not change. Prepare an income statement for 2022. Prepare a balance sheet as of December 31,2022. Prepare a statement of cash flows for the year ending December 31,2022. Prepare a Pro-forma balance sheet for 2023 if Sales is expected to grow by 20%. Make any adjustments necessary to short and long-term debt

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