ACC 311 Intermediate Accounting 1 Fall 2021 Assignment 2 Weighting: 5% (marked out of 100) Due Date: Sunday 14th March 2021 Objective: The objective of the assignment is to test your understanding of learning objectives 1 and 2, especially the preparation of income statement and statement of cash flow. The assignment requires you to use the provided information in Q1 and Q2 to prepare the required financial statements. Please note that ACCURACY and CLARITY of presentation will be rewarded. QI. Below are selected ledger accounts of Woods Corporation at 31 December 2010. Please study the information carefully and use it to answer the questions that follow. Cash AED 185,000 Sales salaries AED 284.000 Merchandise inventory, beginning 535,000 Office salaries 346,000 Sales 4,175,000 Purchase returns 15.000 Advances from customers 117,000 Sales returns 79,000 Purchases 2,786,000 Transportation-in 72,000 Sales discounts 34,000 Accounts receivable 142.000 Purchase discounts 27,000 Sales commissions 83,000 Travel and entertainment-sales 69.000 Telephone-sales 17,000 Accounting and legal services 33,000 Utilities-office 32,000 Insurance expense-office 24,000 Miscellaneous office 8,000 expenses Advertising 54,000 Rental revenue 240,000 Transportation-out 93.000 Loss on sale of division 60,000 Depreciation of office equipment 48,000 Interest expense 176,000 Depreciation of sales equipment 36,000 Share capital-ordinary 900,000 (AED 10 par) Woods's effective tax rate on all items is 30%. A physical inventory indicates that the closing or ending inventory is AED 686,000. Requirements: 1. Determine the net sales amount and cost of goods sold (COGS) 2. Prepare an income statement for Woods Corporation for 2010 financial year showing all the subheadings 3. Calculate the EPS given that the number of ordinary shares outstanding is 90,000 shares. Show all calculations