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Antioch Company makes eBook readers. The company had the following amounts at the beginning of Year $2$: Cash, $$660,000$; Raw Materials Inventory, $$51,000$; Work in Process Inventory, $$18,000$; Finished Goods Inventory, $$43,000$; Common Stock, $$583,000$; and Retained Earnings, $$189,000.$ Antioch experienced the following accounting events during Year $2.$ Other than the adjusting entries for depreciation, assume that all transactions are cash transactions.

Paid $$23,000$ of research and development costs.

Paid $$47,000$ for raw materials that will be used to make eBook readers.

Placed $$83,000$ of the raw materials cost into the process of manufacturing eBook readers.

Paid $$60,000$ for salaries of selling and administrative employees.

Paid $$91,000$ for wages of production workers.

Paid $$90,000$ to purchase equipment used in selling and administrative offices.

Recognized depreciation on the office equipment. The equipment was acquired on January $1,$ Year $2.$ It has a $$10,000$ salvage value and a five$-$year life. The amount of depreciation is computed as $[($Cost $$ salvage$)-$: useful life$].$ Specifically, $($$$90,000$ $$10,000)-$: $5=$ $$16,000.$

Paid $$165,000$ to purchase manufacturing equipment.

Recognized depreciation on the manufacturing equipment. The equipment was acquired on January $1,$ Year $2.$ It has a $$25,000$ salvage value and a seven$-$year life. The amount of depreciation is computed as $[($Cost $$ salvage$)-$: useful life$].$ Specifically, $($$$165,000$ $$25,000)-$: $7=$ $$20,000.$

Paid $$45,000$ for rent and utility costs on the manufacturing facility.

Paid $$70,000$ for inventory holding expenses for completed eBook readers $($rental of warehouse space, salaries of warehouse personnel, and other general storage cost$).$

Completed and transferred eBook readers that had total cost of $$240,000$ from work in process inventory to finished goods.

Sold $1,000$ eBook readers for $$420,000.$

It cost Antioch $$220,000$ to make the eBook readers sold in Event $13.$

Required:

a$.$ Show how these events affect the balance sheet, income statement, and statement of cash flows by recording them in a horizontal financial statements model.

c$-1.$ Prepare a schedule of cost of goods manufactured and sold for the year.

c$-2.$ Prepare a formal income statement for the year.

c$-3.$ Prepare a balance sheet for the year.

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