P4.6 (LO 2, 3, 4, 5) (Statement Presentation) Presented below is a combined income and re- tained earnings statement for Sapporo Lid. for 2022 (amounts in thousands). Net sales Y640,000 Costs and expenses Cost of goods sold V500,000 Selling, general, and administrative expenses 66,000 Other, net 17,000 583,000 Income before income tax 57,000 Income tax 19,400 Net income 37,600 Retained earnings at beginning of period, as previously reported 141,000 Adjustment required for correction of error (7,000) Retained earnings at beginning of period, as restated 134,000 Dividends on ordinary shares (12,200) Retained earnings at end of period Y159,400 Additional facts are as follows. 1. "Selling, general, and administrative expenses" for 2022 included a charge of V8,500,000 for impair- ment of intangibles. 2. "Other, net" for 2022 was a loss on sale of equipment of Y17,000,000. 3. "Adjustment required for correction of an error" was a result of a change in estimate (useful life of certain assets reduced to 8 years and a catch-up adjustment made). 4. Sapporo Company disclosed earnings per share for net income in the notes to the financial statements. Instructions Determine from these additional facts whether the presentation of the facts in the Sapporo Lid. income and retained earnings statement is appropriate. If the presentation is not appropriate, describe the appro- priate presentation and discuss its theoretical rationale. (Do not prepare a revised statement.)