Section 1 information: The financial records of Manchester Corporation were destroyed by fire at the end of 2017. Fortunately, the controller had kept the following statistical data related to the income statement and the balance sheet in addition to the published balance sheet of the year 2017:
1. The beginning merchandise inventory was $92,000 and decreased 20% during the current year.
2. Sales discounts amount to $17,000.
3. Interest expense was $20,000.
4. The income tax is $106,000
5. Cost of goods sold amounts to $500,000.
6. Administrative expenses are 18% of cost of goods sold but only 8% of gross sales.
7. Four-fifths of the operating expenses relate to sales activities.

information: The Financial position statement of the year 2017.
Manchester Corporation
Statement of Financial Position
December 31, 2017
Assets
Investments		32,000
Equipment assets (net)		81,000
Land		40,000
Accounts receivables (net)		21,200
Cash		20,000
		194,200
Equity & Liabilities
Share capital-Ordinary		100,000
Retained earnings		23,200
Long-term notes payable		41,000
Accounts payable		30,000
		194,200

Instructions: Prepare an Income statement for 2018 and answer it with the table below:

Income statement for 2018 and EPS:

Manchester Corporation
Income Statement
For Year Ended December 31, 2018
Gross sales
Sales discount
Cost of goods sold
Gross profit
Selling expenses
Administrative expenses
Income from operations
Interest expense
Income before income tax
Income tax
Net income
Earnings per share