Sarasota 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 $97,200 with an estimated useful life of four years and no residual value. Sarasota has already recorded 2020 depreciation expense of $29,160 related to the assets, using the sum-of-the-years-digits method. Ending inventory for 2019 was overstated by $21,600; ending inventory for 2020 is correctly stated. 2. The adjusted trial balance at December 31, 2018, includes the following amounts: Cash $41,040; Inventory $120,960: Accounts Payable $51,840; Retained Earnings $77,760. Dividends of $32,400 and $27,000 were declared and paid on December 31, 2020, and December 31, 2019, respectively. Share capital of $32,400 consists of 21,600 common shares outstanding since the company's inception. 4. 5. Sarasota's 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. SARASOTA INC. Statement of Financial Position As at December 31, 2020 , 2020 Assets 2019 Cash $64.800 $36,720 Inventory 115,560 138,240 Plant assets, net 29,160 58,320 Total assets $209,520 $233,280 Liabilities and Shareholders' Equity Accounts payable $18,360 $65,880 Share capital 32,400 32,400 Retained earnings 158,760 135.000 Total liabilities and shareholders' equity $209,520 $233,280 SARASOTA INC. Income Statement Year Ended December 31, 2020 2020 2019 Sales $367,200 216,000 $291,600 153,360 Cost of goods sold Gross profit 151,200 138,240 Operating expenses 95,040 54,000 Net income $56,160 $84.240 (a 1) Prepare the comparative income statement for 2020. (Round earnings per share to 2 decimal places, eg. 52.75.) SARASOTA INC. Income Statement For the Years Ended December 31 2019 Restated see note XX 2020 > $ $ $ $