The following events took place for Video Wave Manufacturing Company during January 2016, the first month of its operations as a producer of digital video monitors:a. Purchased $133,200 of materials. b. Used $94,080 of direct materials in production. c. Incurred $180,320 of direct labor wages. d. Incurred $211,680 of factory overhead. e. Transferred $425,320 of work in process to finished goods. f. Sold goods with a cost of $365,000.g. Earned revenues of $652,000.h. Incurred $86,520 of selling expense. i. Incurred $71,250 of administrative expense. Using the information given, complete the following:a. Prepare the January 2016 income statement for Video Wave Manufacturing Company. b. Determine the inventory balances at the end of the first month of operations.

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answer decisions made by individual households and firms;

answernet income for 2017 will be greater if the inventory quantity declines;