a) Identify and review significant issues in the provided income statement. Discuss which issues will be prioritise for decision making?

Eurie Company

Comparative Income Statement

For the years Ended December 31, 2020, and 2021

	2020	2021
Sales	$928000	$800000
Sales returns and allowance	$70,000	$50000
Net sales	$858,000	$750,000
Cost of goods sold	$640,000	500,000
Gross profit	$218,000	$250,000
Selling expenses	$85,800	65,000
Administrative expenses	43400	$35000
Total operating expenses	$129,200	$00,000
Income before operations	$88,800	$150,000
Other income	$16000	$10000
Income before income tax	$104,800	$160,000
Income tax expense	$9200	$8000
Net income	$95600	$152,000