4-48 Test Bank to accompany Intermediate Accounting: IFRS Edition, 3e Solution 4-150 WANG CORPORATION Income Statement For the Year Ended December 31, 2019 Sales Cost of goods sold: Merchandise inventory, Jan. 1 Purchases Less purchase discounts Net purchases Merchandise available for sale Less merchandise inv., Dec. 31 Cost of goods sold 1,050,000 152,000 642,000 18,000 624,000 776,000 125,000 651,000 Gross profit 399,000 Selling expenses 128,000 General and administrative expenses 150,000 278,000 Other income and expense: Dividend revenue 8,000 Income from operations 129,000 Interest expense 17,000 Income before income taxes 112,000 Income taxes 33,600 Income from continuing operations Discontinued operations Loss on disposal, less applicable taxes of $12,000 Net income Per share of share capital 78,400 28,000 50,400 Income from continuing operations Discontinued operations. Net income WANG CORPORATION Retained Earnings Statement For the Year Ended December 31, 2019 Retained earnings, January 1, 2019 Add: Net income Deduct: Dividends declared Retained earnings, December 31, 2019 1.96 (0.70) 1.26 290,000 50,400 29,000 21,400 311,400