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Income Statements For the Year Ended December 31, 2020 and 2019 2020 2019 $ $ Operating revenues- Note 1 8,371,200 7,776,000 Less: Cost of goods

Income Statements

For the Year Ended December 31, 2020 and 2019

2020

2019

$

$

Operating revenues- Note 1

8,371,200

7,776,000

Less: Cost of goods sold

3,872,000

3,840,000

Gross Profit

?

3,936,000

Operating expenses

Selling and administrative expenses

1,472,000

1,600,000

Depreciation expense

320,000

320,000

Other expense

640,000

512,000

Bad debt expense

?

28,800

Rent expense

640,000

640,000

Operating expenses

3,104,000

3,100,800

Net income from operations

?

835,200

Inventory loss

(320,000)

Interest expense

(285,888)

(283,136)

Income before tax

789,312

552,064

Income tax expense

(320,000)

(192,000)

Net income

469,312

360,064

Note 1: Operating revenue includes $451,200 gain on disposal of plant assets and other similar items.

1. Complete the income statement for the year 2020.

2. Complete the balance sheet for the year 2020.

3. Prepare a cash flows statement for the operating activities for the year 2020. along with ratios that can be calculated from the data presented (2 years, trend, percentages etc.)

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