Wang Corporation's capital structure consists of $300,000$ ordinary shares. The

followings are the financial data for the year ended December $31,2022$ and $2023.$:

$2022($$$)2023($$$)$

Sales $30,000,00028,000,000$

Cost of Goods Sold $21,000,00020,000,000$

Loss on discontinued operations $800,000$

Loss on disposal of discontinued operations $750,000$

Selling expenses $2,500$l$,0002,500,000$

Retained earnings, January $1,2022950,000$

Interest expense $120,000150,000$

General and administrative expenses $3,000,0002,700,000$

Dividends declared $310,000250,000$

Interest Revenue $70,00050,000$

Gain on sales of investments $110,000$

Impairment loss of goodwill $520,000$

The applicable income tax rate was $40\%.$ The weighted average number of

ordinary shares outstanding during the year $2022$ and $2023$ was $300,000$ shares.

The market price per share of Wang Corporation was $ $100$ and $ $130$ for the year

ended December $312022$ and $2023$ respectively.

Instructions

$($a$)$ Prepare a comparative income statement with EPS disclosure on the face

of income statement for the year $2023.($Multiple Steps format$).$

$($b$)$ Perform vertical analysis $($common size income statement to show the

percentage of all the items as a percentage of total income$)$ by rearranging the comparative income statement to compute the net income

$($using single step format$)$

$($c$)$ Perform horizontal analysis of the income statement by re$-$arranging the

comparative income statement to compute the net income $($ single$-$step$)$

$($d$)$ Prepare a comparative retained earnings statement for the year $2023.$

$($e$)$ Perform ratio analysis for the year $2022$ and $2023$ to compute the ratio as

follows:

$1.$ Gross profit margin on sales $($Gross Profit $/$ Net Sales x $100\%)$

$2.$ Net profit margin on sales $($Net Income $/$ Net Sales x $100\%)$

$3.$ Earnings per share $($Net Income $$ Preferred Dividend$)/$ weighted

average number of ordinary shares outstanding$)$

$4.$ Price earnings ratio $($Market Price $/$ Earnings per share$)$

$5.$ Payout ratio $($Cash Dividend $/$ Net Income x $100\%)$