Do not give answer in image Problem #1a. Use the following information to create the 2017 and 2018 income statements.b. Create the 2017 and 2018 balance sheets.c. Then create the 2018 indirect cash flow statement.CategoryAccounts payableAccounts receivableAccrualsAdditional paid in capitalCashCommon Stock @ par valueCOGSDepreciation expenseInterest expenseInventoriesLong-term debtNet fixed assetsNotes payableOperating expenses (excl.depr.)Retained earningsSalesTaxes20172018$60,480 $77,760$100,800$129,600$40,320$51,840$362,880$466,560$50,400$64,800$20,160$25,920$231,000$297,000$21,000$27,000$16,800$21,600$50,400 $64,800$221,760$285,120$806,400 ???$100,800 $129,600$42,000 $54,000$201,600 $259,200$420,000 $540,000$63,000 $81,000

Income statement refers to the statement which shows the net profit or loss for the period, whereas…

Problem #1 a. Use the following information to create the 2017 and 2018 income statements. b. Create the 2017 and 2018 balance sheets. c. Then create the 2018 indirect cash flow statement. Category Accounts payable Accounts receivable Accruals 2017 2018 $60,480 $77,760 $100,800 $129,600 $40,320 $51,840