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Presented below is information related to Willie Wonka's Chocolate Factory, Inc. for its fiscal year ending May 31, 2020. During the year, the Board of

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Presented below is information related to Willie Wonka's Chocolate Factory, Inc. for its fiscal year ending May 31, 2020. During the year, the Board of Directors decided to discontinue the operations of its entire Everlasting Gobstoppers division and retain only its Chocolate manufacturing operations. In November 2019, Park sold the Gobstoppers operations to Russell Stover Company. The following amounts were taken from Willie Wonka's general ledger: Administrative expenses Cash dividends declared on common stock Cost of goods sold Gain on sale of investments Income from the operations of the Gobstoppers division, before tax Rent revenue Loss on the disposal of the Gobstoppers division, before tax Loss resulting from a computation error in depreciation in 2012, before tax Retained earnings, June 1, 2019 Sales Sales returns and allowances Selling expenses Unrealized loss on available for sale debt securities, before tax Write off of inventory due to obsolescence (I would have eaten it!) 46,800 48,750 760,500 19,500 16,900 6,825 65,000 41.250 955,500 1,300,000 32,500 63,375 12,550 78,000 Additional information: All amounts are before tax. Assume a 34% tax rate when calculating income taxes. This includes items such as ordinary income, discontinued operations, other comprehensive income and prior period adjustments if applicable. There are 5,000 shares of common stock outstanding for the Earnings per share (EPS) disclosure. All EPS amounts should be rounded to pennies. Round all amounts to whole dollars and make sure they add up correctly. INSTRUCTIONS: Use appropriate headings on all financial statements 1. Prepare an Income Statement (multi-step of course) for the year ended May 31, 2020. 2. Prepare a separate Statement of Comprehensive Income for the year ended May 31, 2020. 3. Prepare a Statement of Retained Earnings for the year ended May 31, 2020

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