1)Prepare a corrected income statement for the year ended December 31, 2019, include at the bottom of your income statement all appropriate earnings per share figures. Assume that throughout the year the company had outstanding a weighted average of 100,000 shares of a single class of capital stock of par value $1.

2)Prepare a statement of retained earnings for 2019. (As originally reported, retained earnings at December 31, 2018, amount to $2,000,000.)

ANNEX 1 - The CEO's questions - Income statement changes. The income statement below was prepared by a new and inexperienced employee in the ac- counting department of Toshiro Space Ltd a new California based business venture in the group : TOSHIRO SPACE LTD Income Statement For the Year Ended December 31, 2019 Net sales Gain on sale of treasury stock. Excess of issuance price over par value of capital stock...... Prior period adjustment (net of income taxes). Extraordinary gain (net of income taxes). Total revenue $9,800,000 47,000 640,000 90,000 50,000 $10,627,000 Less: $5,000,000 1,310,000 942,000 12,000 810,000 Cost of goods sold.. Selling expenses General and administrative expenses Loss from settlement of litigation..... Income taxes on continuing operations. Operating loss on discontinued operations (net of income tax benefit)........ Loss on disposal of discontinued operations (net of income tax benefit)....... Cumulative effect of change in accounting principle (net of income tax benefit). Dividends declared on capital stock. Total costs and expenses. 170,000 390,000 92,000 400.000 9,126,000 Net income. $1.501.000