Gander Inc. (Question to be answered on paper or Excel) [7 marks]

The financial records of Gander Inc. were destroyed in a flood at the end of December 2017. Fortunately the Controller had backed-up some statistical data related to financial performance so she was able to provide the following information related to the income statement:

Beginning merchandise inventory was $84,000. During 2017 inventory decreased by 20%

Sales discounts were $15,000

Common shares outstanding in 2017 were 15,000

Interest expense was $20,000

Ganders income tax rate is 25%

Cost of goods sold was $420,000

Administrative expenses were 20% of cost of goods sold but only 4% of gross sales

Selling expenses represented 80% of cost of goods sold.

Using the above data prepare a single-step income statement for Gander for the year ended December 31, 2017. Expenses should be presented by function. Your statement should include an EPS calculation. [7 marks]