Question 8 The financial records of Monty Inc. were destroyed by fire at the end of 2020. Fortunately, the controller had kept the following statistical data related to the income statement: 1. 2. 3. 4. The beginning merchandise inventory was $86,000 and it decreased by 15% during the current year. There were 10,000 common shares outstanding for the entire year. Interest expense was $25,000. The income tax rate was 20%. Cost of goods sold amounted to $450,000. Administrative expenses were 15% of cost of goods sold but only 3% of gross sales. Selling expenses were four fifths of cost of goods sold. 5. 6. 7. (a) Prepare a single-step income statement for the year ended December 31, 2020, including calculation of EPS. Expenses should be shown by function. (Round per share answer to 2 decimal places, e.g. 52.75.) Monty Inc. Income Statement For the Month Ended December 31, 2020 Earning per Share