Problem 2 15 marks

The following information was obtained from the 12/31/20 Annual Report to Shareholders of Bakers Unlimited all figures are in millions:

Accounts payable	$1,897
Accounts receivable (net)	3,131
Accrued liabilities	4,105
Cash and cash equivalents	162
Cost of sales	17,531
Dividends paid	250
Current portion of long-term debt	540
Retained earnings as of 1/1/20	2,391
Goodwill and other intangible assets (net)	35,957
Interest expense	1,437
Inventories	3,026
Long-term notes receivable	5,000
Marketing, general and administration expenses	11,460
Income Tax (on earnings)	845
Sales	33,875
Long-term investments	8,687
Other noncurrent assets	3,726
Other stockholders' equity	(2,568)
Paid-in capital for common and preferred stock	23,655
Property, plant and equipment (net)	9,109
Rental Income	681

Required:

Based on the information presented above,

1. prepare the Income Statement (either single or multiple step) for Bakers Unlimited for the year ended December 31, 2020 assuming that

• taxes as outlined in bold above apply,
• there are 500 million common shares in issue and
• the preference dividend paid was $2 million. (9 marks)

(b) prepare the Noncurrent/Long-term assets section of Bakers Unlimited Balance Sheet as at December 31, 2020. (6 marks)