Question 1: [14 Marks] Instructions: Prepare an income statement and retained earnings statement for 2020 for Al-Arab Company that is presented in accordance with IFRS (including format and terminology). Then answer the following questions: Presented below is information related to Al-Arab Company. Its capital structure consists of 80,000 ordinary shares. At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information: 1- The amount of cost of goods sold for 2020 equals? 2- The amount of gross profit for 2020 equals? ? 3. The amount of income from operations for 2020 equals? ? 4- The amount of income tax for 2020 equals? Sales Revenues Purchases Purchase discounts Cash Loss on discontinued operations (net of tax) Selling expenses Share capital Accounts receivable Land Accumulated depreciation Dividend revenue Inventory, January 1, 2020 Inventory, December 31, 2020 Uneamed service revenue Accrued interest payable Dividends declared Patents Retained earnings, January 1, 2020 Interest expense General and administrative expenses Accounts payable Allowance for doubtful accounts Notes payable (maturity 7/1/25) Machinery and equipment Materials and supplies 2,100,000 1,284,000 36,000 120,000 56,000 256,000 400.000 180,000 740,000 360,000 16,000 304,000 250,000 8,800 2,000 58,000 200,000 580,000 34,000 300,000 120,000 10,000 400,000 900,000 80,000 5- The amount of income from continuing operations for 2020 equals? 6- The amount of net income for 2020 equals? 7- The amount of retained earnings on 31/12/2020 equals? Note: The amount of income taxes was 91,200, including the tax effect of the discontinued operations : loss which amounted to 24.000. P