[SOLUTION] Sales and Purchases

On March 31st, 2021 the company purchased 2 new vehicles for a total amount of 80.000$. The company paid cash. The estimated useful life of said vehicles is 5 years, no salvage value.The company uses the straight line method for depreciation purposes. Also the half-year convention is applied.All the sales and purchases of the company are made on account at 30 days.The note payable was contracted on December 31, 2020 and bears 5% interests to be paid as a lump sum at maturity, in June 15, 2022.Salaries are paid the 5th day of each monthTaxes (25% rate) are paid at the end of June.Questions:1.- Prepare a complete depreciation schedule for the vehicles purchased in 2021 (15 points)2.- Prepare the income statement for year 2021 (20 points)3.- Prepare the Balance Sheet for 2021 (20 points)4.- Prepare Cash Flow Statement for 2021 (30 points)5.- Explain what are the most important factors in this case that explain the difference between Net income and Cash Flow. (15 points)RubricsDescriptor 9-10 The student demonstrates an excellent understanding of theconcepts. 8-8.9 The student demonstrates a good understanding of the concepts. 7-7.9 The student demonstrates a fair understanding of the concepts. 6-6.9 The student demonstrates some, but insufficient understanding of theconcepts. 3-5.9 The student demonstrates insufficient understanding of the concepts.They may mention some relevant ideas or concepts, although it is clear that the relationship between them is not understood by the student1-2.9 The student demonstrates insufficient understanding of the concepts and does not mention any relevant ideas or concepts.0 The student leaves the question blank or cheats.