Question
Fargo Inc. showed the following profit statement information for its first three years of operations: For the Years Ended December 31 Net Sales Cost of
Fargo Inc. showed the following profit statement information for its first three years of operations: For the Years Ended December 31 Net Sales Cost of Goods Sold Operating Expenses Other Revenues (Expenses) Income Tax Expense 2021 58,400,000 4,700,000 2020 $7,400,000 2019 $6,400,000 4,100,000 3,350,000 2,930,000 2,830,000 2,430,000 (336,000) (356,000) 97,000 33,000 67,000 117,000 Partial information regarding Fargo's equity for the past three years follows: Dec. 31, Dec. 31, Dec. 31, 2021 2020 2019 Contributed capital: Preferred shares, $2 non-cumulative: 100,000 shares authorized; 37,000 shares issued and outstanding Common shares, 500,000 shares authorized; 270, 000 shares issued and outstanding Total contributed capital Retained earnings** Total equity "Issued on January 1, 2019. $570,000 $570,000 $570,000 720,000 720,000 720,000 "Cash dividends of $253,000 were declared and paid for the year ended Dec. 31, 2019. Dividends were not declared for the years ended Dec. 31, 2020, or Dec. 31, 2021. Required: 1. Calculate Gross Profit, Operating Profit, Profit Before Tax, and Profit for the years ended December 31, 2019, 2020, and 2021. Gross profit Operating Profit Profit Before Tax Profit 2021 2020 2019 2, 3 & 4. Calculate Contributed Capital, Retained Earnings and Total Equity as at December 31, 2019, 2020, and 2021. FARGO INC. Equity Section of the Balance Sheet for 31 December, 2019, 2020 & 2021 Contributed Capital Total contributed capital Total equity 2021 2020 2019
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