The Diamond Factory, Inc. has just ended the 2021 production year. The balance sheet and income statement are presented

[answerhappygod]

The Diamond Factory, Inc. has just ended the 2021 production
year. The balance sheet and income statement are presented below.
Two of the four key financial statements remain to be prepared for
the stockholders’ report.
Balance Sheet
Diamond Factory, Inc.
December 31, 2021 and 2020
2021
2020
Assets
Cash
$ 2,000

$ 1,500
Accounts receivable

7,500

5,000
Inventory
7,000

6,000
Gross fixed assets

$22,000

$19,000
Accumulated depreciation

11,000

10,000
Net fixed
assets
$11,000

$ 9,000
Total assets

$27,500
$21,500
Liabilities and Stockholders’ Equity
Accounts
payable
$
3,000
$ 2,000
Notes payable

3,500

3,000
Accruals
1,500

1,500
Long-term debt

13,000

9,500
Common stock at par

500

500
Paid-in capital in excess of par

4,000

4,000
Retained earnings

2,000

1,000
Total liabilities and stockholders’ equity

$27,500

$21,500
Income Statement
Diamond Factory, Inc.
for the Year Ended December 31, 2021
Sales

$40,000
Cost of goods
sold
21,000
Gross profits

$19,000
Operating expenses

12,500
Operating
profits
$ 6,500
Interest expense

2,000
Net profits before taxes

$ 4,500
Taxes (40%)

1,800
Net Income after taxes

$ 2,700
Required:
a. Calculate the amount of cash dividends paid during 2021.
b. Calculate the depreciation expense incurred during 2021.
c. Prepare a statement of retained earnings for the year ended
December 31, 2021.
d. Prepare the statement of cash flows for the year ended
December 31, 2021.