Joe Schreiner, controller for Founder Company Inc., recently prepared the company's income statement and statement of changes in equity for 2017. Schreiner believes that the statements are a fair presentation of the company's financial progress during the current period, but he also admits that he has not examined any recent professional pronouncements on accounting. FLOUNDER COMPANY INC. Income Statement For the Year Ended December 31, 2017 Sales revenues Less: Sales returns and allowances Net sales revenue Cost of goods sold S 388,800 15,370 373,430 s 51,100 Inventory, January 1, 2017 Purchases Less: Purchase discounts Cost of goods available for sale Inventory, December 31, 2017 Cost of goods sold $ 190,000 2,820 187,180 238,280 42,660 195,620 177,810 Gross profit Selling expenses Administrative expenses Income before income tax Other revenues and gains 43,020 33,300 76,320 101,490 Unrealized gain on FV-OCI investments Dividends received 37,600 41,600 180,690 54,207 126,483 Income tax Net income FLOUNDER COMPANY INC. Excerpt from Statement of Changes in Equity For the Year Ended December 31, 2017 Retained earnings, January 1, 2017 Add: s 212,000 Net income for 2017 Gain from sale of long-term investments $126,483 31,000 $157,483 Deduct: Loss on expropriation Correction of mathematical error (net of tax) 18,228 (32,728 14,500 124,755 S 336,755 Retained earnings, December 31, 2017 Assume that Flounder Company follows IFRS, and has a tax rate of 30%. Assume that investments are accounted for as FV-OCI investments with gains/losses recycled through net income. Prepare a statement of comprehensive income showing expenses by function. Ignore calculation o EPS. Round answers to 0 decimal places, eg. 5,275. Round tax rate to 4 decimal places, eg, 52.7525%. FLOUNDER COMPANY INC. Income Assume that Flounder Company follows IFRS, and has a tax rate of 30%. Assume that investments are accounted for as FV-OCI investments with gains/losses recycled through net income. Prepare a statement of comprehensive income showing expenses by function. Ignore calculation of EPS. (Round answers to 0 decimal places, e.g. 5,275. Round tax rate to 4 decimal places, e.g. 52.7525%.) s25%) FLOUNDER COMPANY INC. Statement of Income