Marco Polo Income Statement For the Month Ended October 31, 2020 Sales Revenue 70,000.00 Less: Sales Discount 3,500.00 Net Sales 66,500.00 Cost of Goods sold 19.950.00 Gross Profit 46,550.00 Operating Expense Bank Charge Expense 60.00 Employee Benefits Expense 637.20 Salaries Expense 8,400.00 Total Operating Expense 9,097.20 Net Operating Income 37,452.80 Net Income 37,452.80 2) Prepare a calculation of retained earnings Calculation of Retained Earnings For the Month Ended October 31, 2020 Retain Earning, October 01,2020 31,850.00 Add Net Income 37,452.80 Retain Earning, October 31,2020 69,302.80 3) Prepare a statement of shareholders' equity Marco Polo Statement of Shareholders' Equity For the Month Ended October 31, 2020 Marco Polo, Capital at October 01,2020 93,850.00 Add: Net Income 37,452.80 Marco Polo, Capital at October 31,2020 131,302.80