Income Statements
For the Year Ended December 31, 2020 and 2019
	2020
	$
Operating revenues- Note 1	8,371,200
Less: Cost of goods sold	3,872,000
Gross Profit	?
Operating expenses
Selling and administrative expenses	1,472,000
Depreciation expense	320,000
Other expense	640,000
Bad debt expense	?
Rent expense	640,000
Operating expenses	3,104,000
Net income from operations	?
Inventory loss	(320,000)
Interest expense	(285,888)
Income before tax	789,312
Income tax expense	(320,000)
Net income	469,312
Note 1: Operating revenue includes $451,200 gain on disposal of plant assets and other similar items.

Balance Sheets
December 31, 2020 and 2019
ASSETS	2020	2019
	$	$
Cash	911,040	3,755,264
Accounts receivable	2,880,000	2,240,000
Less: Allowance for bad debts	(38,400)	(35,200)
Inventory	3,520,000	2,880,000
Total current assets	?	8,840,064
Long term investment	?	697,600
Property, plant, and equipment	6,016,000	3,200,000
Less: Accumulated depreciation	(1,216,000)	(1,280,000)
Goodwill	960,000	-
Total assets	13,797,440	11,457,664
LIABILITIES AND SHAREHOLDERS EQUITY
Liabilities
Accounts payable	1,024,000	524,800
Accrued payables	896,000	384,000
Unearned revenues	0	512,000
Total current liabilities	1,920,000	1,420,800
Other long term liability - pension	469,696	341,696
Bonds payable	3,200,000	3,200,000
Less: Discount on bonds payable	(311,552)	(341,440)
Deferred income tax	201,920	204,544
Total Liabilities	?	4,825,600
Shareholders equity
Preferred stock	3,200,000	3,200,000
Common stock	?	320,000
Additional paid-in capital	3,840,000	3,520,000
Retained earnings	2,109,376	2,024,064
Less: Treasury stock	(1,152,000)	(2,432,000)
Total shareholders equity	8,317,376	6,632,064
Total liabilities and shareholders equity	13,797,440	11,457,664

1. Complete the income statement for the year 2020.