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.

2. Complete the balance sheet for the year 2020.

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