The following balances were taken from the books of Parnevik ASA on December 31, 2022.

Assume the total effective tax rate on all items is 34%.

Instructions

Prepare an income statement; 100,000 ordinary shares were outstanding during the year.

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Interest revenue Accumulated depreciation- € 86,000 buildings € 28,000 Cash 51,000 Notes receivable 155,000 Sales revenue 1,280,000 Selling expenses 194,000 Accounts receivable 150,000 Accounts payable 170,000 Prepaid insurance 20,000 Bonds payable 100,000 Sales returns and allowances 150,000 Administrative and general 97,000 expenses Allowance for doubtful accounts 7,000 Accrued liabilities 32,000 Sales discounts 45,000 Interest expense б0,000 Land 100,000 Notes payable 100,000 Equipment Loss on impairment of plant 200,000 assets 120,000 Buildings 140,000 Share capital-ordinary 500,000 Cost of goods sold Accumulated depreciation- equipment 621,000 Retained earnings 21,000 40,000