The following information is taken from the 2020 annual report of Splish, Inc. Splish's fiscal year ends December 31 of each year. Splish's December 31, 2020, balance sheet is as follows. Splish, Inc. Balance Sheet December 31, 2020 Assets Cash Inventory Total current assets Plant and equipment Accumulated depreciation Total assets Liabilities Bonds payable (net of discount) Stockholders' equity Common stock Retained earnings Total liabilities and stockholders' equity $420 1,730 2.150 1.800 (144) 3,806 $1.426 1,500 880 $3,806 Note X: Long Term Debt: On January 1, 2019, Splish issued bonds with face value of $1.500 and a coupon rate equal to 10%. The bonds were issued to yield 12% and mature on January 1, 2024. Additional information concerning 2021 is as follows. Sales were $3,200, all for cash Purchases were $1,900, all paid in cash Salaries were $750, all paid in cash Property, plant and equipment was originally purchased for $1,800 and is depreciated straight-line over a 25-year life with no salvage value 5. Ending inventory was $2.100 Cash dividends of $110 were declared and paid by Splish 7. Ignore taxes The market rate of interest on bonds of similar risk was 12% during all of 2021 Interest on the bonds is paid semiannually cach June 30 and December 31 1 2 3. 4. 6. 8. 9. SPLISH, INC. Income Statement