Counting Crows Ltd. Accounting Question

Counting Crows Ltd. provided the following informatiou for the year 2022. Retained earnings, January 1, 2022 600,000 Administrative expenses 240,000 Selling expenses 300,000 Sales revende 1,900,000 Cash dividends declared 80,000 Cast of goods sold 850,000 Gain on sale of investments 62,700 Loss on discontinued operations 75,000 Rent revenue 40,000 Unrealized bolding gain on non-trading equity securities 17.000 Income tax applicable to continuing operations 187,000 Income tax benefit applicable to loss on discontinued operations 25.500 Income tax applicable to unrealized holding gain 2,000 Weighted-average shares outstanding 100,000 Accounting Preparo (a) an incoene statement for 2022,(b)a rotazed earnings statement for 2022, and e) a statement of comprehensive income using the tro starement format Analysis Explain how incorne statement subheads can provide useful information to financial statement readers. Principles In a recent meeting with its auditor, Counting Crows management argued that the company should be able to prepare a pro forma inesse statement, with scenes tine administrative expenses reported similarly to the reporting of discontinued operations. Is such reporting consistent with the qualitative characteristics of accounting information as discussed in the Conceptual Framework? Explain