E4.9 Presented below is information related to Tao Ltd. for the year 2019 (amounts in thousands). Net sales HK$1,200,000 Write-off of inventory due to HK$80,000 obsolescence Cost of goods sold 780,000 Depreciation expense omitted by accident in 2018 40,000 Selling expenses 65,000 Interest expense 50,000 Administrative expenses 48,000 Cash dividends declared 45,000 Dividend revenue 20,000 Retained earnings at December 980,000 31, 2018 Interest revenue 7,000 Effective tax rate of 34% on all items Instructions a. Prepare an income statement for 2019. Assume that 60,000 ordinary shares are outstanding. b. Prepare a retained earnings statement for 2019.