A Moving to another question will save this response. Question 8 The following comparative statement of financial position for Dubai Co. is given for the financial period 2020 PPE $430,000 2019 $395,000 Accumulated depreciation of PPE (170,000) (155,000) Copyrights 45,000 58,000 Receivables 22,000 12,000 Inventory 65,000 72,000 Prepaid expenses 70,000 52,000 Cash 172,000 71,000 $634,000 $505,000 Capital- preferred shares $42,000 23,000 Premium on preferred shares 150,000 160,000 Common stock 96,000 56,000 Retained earnings 45,000 34,000 Bond payable 57,000 Accounts payable 65,000 45,000 Accrued liabilities 179,000 187,000 $634,000 $505,000 The income statement for 2020 is as follows: Net sales Cost of goods sold Gross profit Operating expenses Net income $850,000 582,000 268,000 170,000 $98,000