Sintra Flights Inc. shows the following financial information at August 31, 2020:

General expenses............................................................................................ $ 220,000
Loss on sale of discontinued segment............................................................... 18,000
Cost of goods sold.............................................................................................. 570,000
Income tax expense—continuing operations................................................... 35,500
Income tax expense, discontinued segment—operating income.................... 2,000
Income tax saving, discontinued segment—loss on sale................................ (4,500)
Interest expense................................................................................................... 27,000
Gain on settlement of lawsuit............................................................................. 27,000
Sales returns.......................................................................................................... 23,000
Contributed surplus from repurchase of preferred shares........................... 18,000
Sales discounts....................................................................................................... 7,000
Sales revenue.................................................................................................. 1,000,000
Operating income, discontinued segment........................................................ 8,000
Loss on sale of property, plant, and equipment............................................... 5,000
Dividends on preferred shares......................................................................... 12,500
Preferred shares, $0.50, cumulative, 50,000 shares authorized,
25,000 shares issued and outstanding........................................................... 350,000
Dividends on common shares.......................................................................... 25,000
Retained earnings, September 1, 2019.......................................................... 197,000
Selling expenses.................................................................................................. 33,000
Common shares, unlimited shares authorized, 40,000 shares
issued and outstanding................................................................................... 433,000

Required

1. Prepare a single-step income statement, including earnings per share, for Sintra Flights Inc. for the fiscal year ended August 31, 2020. List expenses from highest to lowest amount.

2. Evaluate income for the year ended August 31, 2020, in terms of the outlook for the 2021 fiscal year. Assume 2020 was a typical year and that Sintra Flights’s managers hoped to earn income from continuing operations equal to 12 percent of net sales.