Amana Cement Corporation is a private corporation controlled by Amin Amana. The company's adjusted trial balance and other related data at 31 December 20X5 are given below. Although the company uses some obsolete terminology, the amounts are correct. AMANA CEMENT CORPORATION Adjusted Trial Balance 31 December 20X5 Debit Balance Accounts Cash Land (used for building site) Cost of goods sold Short-term securities, at market (cost, $32,000) Investment in U.S. subsidiary Goodwill Merchandise inventory Office supplies inventory Patent Operating expenses Income tax expense Impairment of patent Prepaid insurance Building (at cost) Land (held for speculation) Translation loss on U.S. subsidiary, 31 December 20X4 Accrued interest receivable Accounts receivable (trade) Note receivable, 10% (long-term investment) Subscriber lists (net) Prepayments to pension fund in advance of expensing (long-term) Dividends declared in 20x5, payable in 2006 Correction of error from prior year-no income tax effect $ 38,600 129,000 150,000 42,000 100,000 120,000 29,000 2,000 7,000 55,000 17,500 7,500 900 150,000 75,000 12,000 300 22,700 30,000 22,000 26,000 15,000 15,000 $1,066,500 Credit Balance Accounts Reserve for bad debts Accounts payable (trade) Revenues 20x5 translation gain on U.S. subsidiary Deferred income tax Note payable (short term) Common shares, no par, 10,000 shares outstanding Reserve for depreciation, building Retained earnings, 1 January 2005 Gain on new accounting policy Accrued wages Cash advance from customer Accrued property taxes Note payable (long term) Rent revenue collected in advance Bonds payable, 11% ($25,000 due 1 June 2006) $ 1,100 15,000 275,000 15,000 47,500 12,000 170,000 90,000 202,500 40,000 2,100 3,000 800 16,000 1,500 175,000 $1,066,500 Additional information (no accounting errors are involved): a. Merchandise inventory is based on FIFO, lower of cost or net realizable value. b. The patent is subjected to an annual impairment test. The impairment for 20x5 has already been recorded. c. Operating expenses as given include depreciation and interest expense, and revenues include interest and investment revenues. .d. The "cash advance from customer" was for a special order that will not be completed and shipped until March 20X6; the sales price has not been definitely established because it is to be based on cost (no revenue should be recognized for 20X5). Required: 1-a. Prepare the income statement. AMANA CEMENT CORPORATION Income Statement Year ended 31 December 20X5 (Amounts in Canadian dollars) Expenses: Total expenses 1-b. Compute EPS. (Round the answer to two decimal places.) EPS 2. Prepare the statement of retained earnings. (Negative and deductible amounts should be indicated by a minus sign.) s AMANA CEMENT CORPORATION Statement of Changes in Retained Earnings Year Ended 31 December 20X5 (Amounts in Canadian dollars) Balance, 31 December 20X4 Adjustments: Correction of error from 20X3 Change in accounting policy Restated balance, 1 January 20X4 Shareholders' equity, 31 December 20X5 3. Prepare the SFP. AMANA CEMENT CORPORATION Statement of Financial Position 31 December 20X5 Assets Current assets: Total current assets Noncurrent assets: Total assets Liabilities Liabilities Current liabilities: Total current liabilities Noncurrent liabilities: Total noncurrent liabilities Total liabilities Shareholders' Equity Total liabilities and shareholders' equity