Information for 2020 follows for Rolling Thunder Corp.:
Retained earnings, January 1, 2020 …………………………………………………………….. $ 1,980,000
Sales revenue ……………………………………………………………………………………………… 36,500,000
Cost of goods sold ………………………………………………………………………………………. 28,500,000
Interest income ……………………………………………………………………………………………….. 170,000
Selling and administrative expenses ……………………………………………………………… 4,700,000
Unrealized gain on FV-OCI equity investments (gains/losses not
recycled) …………………………………………………………………………………………………………. 320,000
Loss on impairment of ………………………………………………………………………. 520,000
Income tax on continuing operations for 2020 (assume this is correct) …………… 797,500
Assessment for additional income tax for 2018 (normal, recurring, and
not caused by an error) …………………………………………………………………………………… 500,000
Gain on disposal of FV-NI investments …………………………………………………………….. 110,000
Loss from flood damage ………………………………………………………………………………….. 390,000
Loss on disposal of discontinued division (net of tax of $87,500) ……………………… 262,500
Loss from operation of discontinued division (net of tax of $55,000) ……………….. 165,000
Dividends declared on common shares …………………………………………………………… 250,000
Dividends declared on preferred shares ……………………………………………………………. 70,000
Rolling Thunder decided to discontinue its entire wholesale division (a major line of business) and to keep its manufacturing division. On September 15, it sold the wholesale division to Dylane Corp. During 2020, there were 800,000 common shares outstanding all year. Rolling Thunder’s tax rate is 25% on operating income and all gains and losses (use this rate where the tax provisions are not given). Rolling Thunder prepares in accordance with IFRS.
Instructions
Prepare a multiple-step statement of financial performance for the year ended December 31, 2020, showing expenses by function. Include calculation of EPS.
