.

Income Statements
For the Years Ended December 31, 2020 and 2019
	2020	2019
	$	$
Operating revenues- Note 1	?	1,944,000
Less: Cost of goods sold	968,000	960,000
Gross Profit	1,124,800	984,000
Operating expenses
Selling and administrative expenses	368,000	400,000
Depreciation expense	?	80,000
Other expense	160,000	128,000
Bad debt expense	8,000	7,200
Rent expense	160,000	160,000
Operating expenses	776,000	775,200
Net income from operations	?	208,800
Inventory loss	(80,000)	-
Interest expense	(71,472)	(70,784)
Income before tax	197,328	138,016
Income tax expense	(80,000)	(48,000)
Net income	117,328	90,016
Note 1: Operating revenue includes $84,600 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. 4. Compute ratios that can be calculated from the data presented ( 2 years, trend, percentages etc.) 5. Objectives of comparative financial statements 6. The completed financial statements, and the details of calculations used 7. The procedure used to prepare the operating activities of the cash flows statement 8. Detailed calculations of the ratios and your comments on the ratios calculated 9. Comments/Opinion on the financial health of the company (comparing 2 years)