Reference no: EM133064610

Question - Umm Al Quwain Corporation's capital structure consists of 100,000 shares of common stock. At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information:

Net Sales revenue Cost of goods sold Purchases Purchase discounts Purchase return & allowance Beginning Inventory, January 1, 2020 Ending Inventory, December 31, 2020 Selling expenses Administrative expenses Dividend revenue Interest expense Dividends declared Earthquake loss (net of tax) Unearned service revenue Interest payable Land Patents Accounts receivable Accounts payable Cash	$2,000,000 900,000 850,000 18,000 32,000 250,000 150,000 120,000 180,000 25,000 15,000 70,000 9,000 4,121 1,999 370,814 111,222 90,000 60,000 60,000
Retained earnings, January 1, 2020	14,000

The amount of income taxes applicable to ordinary income was $30,000, excluding the tax effect of the earthquake loss which amounted to $3,000.

Required -

1. Compute the amount of cost of goods sold.

2. Prepare a multiple-step income statement for 2020.

3. Compute earnings per share (EPS).

4. Prepare retained earnings statement for 2020.