Sheffield Inc. follows IFRS and is adjusting and correcting its books at the end of 2023. In reviewing its records, the following information has been compiled: 1. 2. 3. 4. In 2023, the depreciation method on plant assets should be changed from the 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 2022 for $99,000 with an estimated useful life of four years and no residual value. Sheffield has already recorded 2023 depreciation expense of $29,700 related to the assets, using the sum-of-the-years'-digits method. Ending inventory for 2022 was overstated by $22,000; ending inventory for 2023 is correctly stated. The adjusted trial balance at December 31, 2021, includes the following amounts: Cash $41,800; Inventory $123,200; Accounts Payable $52,800; Retained Earnings $79,200. Dividends of $33,000 and $27,500 were declared and paid on December 31, 2023, and December 31, 2022, respectively. 5. Share capital of $33,000 consists of 13,750 common shares outstanding since the company's inception. Sheffield's statement of financial position and income statement are as follows at December 31, 2022 and 2023, before any corrections related to the information above. The December 31, 2023 statements are in draft form only and the 2023 accounts have not yet been closed. Assets Cash SHEFFIELD INC. Statement of Financial Position As at December 31, 2023 Inventory Plant assets, net Total assets Liabilities and Shareholders' Equity Accounts payable Share capital Retained earnings Total liabilities and shareholders' equity 2023 2022 $66,000 $37,400 117,700 140,800 29,700 59,400 $213,400 $237,600 $18,700 $67,100 33,000 33,000 161,700 137,500 $213,400 $237,600 SHEFFIELD INC. Income Statement Year Ended December 31, 2023 2023 2022 Sales $374,000 $297,000 Cost of goods sold 220,000 156,200 Gross profit 154,000 140,800 Operating expenses 96,800 55,000 Net income $57,200 $85,800 Prepare the comparative income statement for 2023. Ignore income tax effects. (Round earnings per share to 2 decimal places, e.g. 52.75.) Sales Cost of Goods Sold Gross Profit Operating Expenses Net Income (Loss) Earnings per Share SHEFFIELD INC. Income Statement For the Years Ended December 31 A +A +A 2023 374000 198000 176000 86900 89100 Hi +A $ 2022 Restated see note XX 297000 178200 118800 55000 63800 6.48 $ 4.64 Retained Earnings Prepare the comparative statement of changes in equity for 2023. Ignore income tax effects. SHEFFIELD INC. Statement of Changes in Equity A Share Capital Total A $ +A +A +A SHEFFIELD INC. Statement of Changes in Equity December 31, 2023 For the Month Ended December 31, 2023 For the Year Ended December 31, 2023 Re Balance, January 1, 2022 Balance, December 31, 2022, as Restated Balance, December 31, 2023 Cost of Goods Sold Dividends Earnings per Share Gross Profit Net Income (Loss) 2022 (Restated) Overstatement Net income / (Loss) 2023 Operating Expenses Sales