Novak Inc. follows IFRS and is adjusting and correcting its books at the end of 2020. In reviewing its records, the following information has been compiled:

1. In 2020, the depreciation method on plant assets should be changed from sum-of-the-years-digits to the straight-line method due to a change in pattern of usage. The assets were purchased at the beginning of 2019 for $88,200 with an estimated useful life of four years and no residual value. Novak has already recorded 2020 depreciation expense of $26,460 related to the assets, using the sum-of-the-years-digits method.

2. Ending inventory for 2019 was overstated by $19,600; ending inventory for 2020 is correctly stated.

3. The adjusted trial balance at December 31, 2018, includes the following amounts: Cash $37,240; Inventory $109,760; Accounts Payable $47,040; Retained Earnings $70,560.

4. Dividends of $29,400 and $24,500 were declared and paid on December 31, 2020, and December 31, 2019, respectively.

5. Share capital of $29,400 consists of 19,600 common shares outstanding since the companys inception.

Novaks statement of financial position and income statement are as follows at December 31, 2019 and 2020, before any corrections related to the information above. The December 31, 2020 statements are in draft form only and the 2020 accounts have not yet been closed.

NOVAK INC. Statement of Financial Position As at December 31, 2020

Assets 2020 2019

Cash $58,800 $33,320

Inventory 104,860 125,440

Plant assets, net 26,460 52,920

Total assets $190,120 $211,680

Liabilities and Shareholders Equity

Accounts payable $16,660 $59,780

Share capital 29,400 29,400

Retained earnings 144,060 122,500

Total liabilities and shareholders equity $190,120 $211,680

NOVAK INC. Income Statement Year Ended December 31, 2020

2020 2019

Sales $333,200 $264,600

Cost of goods sold 196,000 139,160

Gross profit 137,200 125,440

Operating expenses 86,240 49,000

Net income $50,960 $76,440

1) Prepare the comparative income statement for 2020.

2) Prepare the comparative statement of changes in equity for 2020

3)Prepare the comparative statement of financial position as at December 31, 2020.