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  3. the following information is taken from the 2025 a

The following information is taken from the 2025 annual report of snertaan, inc. Sheridan's December...

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Accounting

The following information is taken from the 2025 annual report of snertaan, inc. Sheridan's December 31,2025, balance sheet is as follows.
\table[[\table[[Sheridan, Inc.],[Balance Sheet],[December 31,2025]],],[Assets],[Cash,$490
Note X: Long Term Debt:
On January 1,2024, Sheridan issued bonds with face value of $1,300 and a coupon rate equal to 10%. The bonds were issueld 12% and mature on January 1,2029.
Additional information concerning 2026 is as follows.
Sales were $3,700, all for cash.
Purchases were $2,200, all paid in cash.
Salaries were $640, all paid in cash.
Property, plant, and equipment was originally purchased for $2,200 and is depreciated straight-line over a 25-year life with no salvage value.
Ending inventory was $2,000.
Cash dividends of $100 were declared and paid by Sheridan.
Ignore taxes.
The market rate of interest on bonds of similar risk was 12% during all of 2026.
Interest on the bonds is paid semiannually each June 30 and December 31.
(a1)
Prepare an income statement for the year ending December 31,2026. Assume semiannual compounding of the bond interest.

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