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Computing Financial Statement Measures The following pretax amounts are taken from the adjusted trial balance of Mastery Inc. on December 31, 2020, its annual year-end.
Computing Financial Statement Measures The following pretax amounts are taken from the adjusted trial balance of Mastery Inc. on December 31, 2020, its annual year-end. Assume that the income tax rate for all items is 25%. The average number of common shares outstanding during the year was 20,000. Balance, retained earnings, December 31, 2019 $ 162,000 Sales revenue Cost of goods sold 1,080,000 378,000 Selling expenses 129,600 Administrative expenses 122,400 Gain on sale of investments 36,000 Unrealized holding gain on debt investments, net of tax 15,300 Prior period adjustment, understatement of depreciation from prior period (2019) Dividends declared and paid 72,000 57,600 Required Compute the following amounts for the year-end financial statements of 2020. Do not use negative signs with any of your answers. Enter the answer for earnings per share in dollars and cents, rounded to the nearest penny. Item Amount a. Gross profit (2020). $ 702,000 b. Operating income (2020). $ 450,000 c. Net income (2020). $ 0 d. Earnings per share (2020). $ 0 e. Comprehensive income (2020). $ 0 f. Retained earnings balance (December 31, 2020) $ 0
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