please write clearly or by keyboard (all additional information and requirments in the second picutre)

BUDDY CORPORATION Assignment #1 Total 30 marks ADDITIONAL INFORMA IION: NOTE: All revenue, expense figures are before taxes ADDITIONAL INFORMATION: 1. The company performed a year end physical count of its inventory as at December 31. 2020. The amount of inventory an fand at December 31, 2020 amounted to 5415.700. Inventory is maintained on a PERIODIC basis 2. Assume that the tax rate was 30%. All accounts on the Tnal Balance are botore tax 3. The amount of common stock outstanding on January 1, 2020 was 50,000 In 2020, common stock was issued as follows. on Apnil 1. 20.000 common shares were issced and on September 1:30,000 common shares were issued. 4. An error was discovered in the company's 2019 financial statements. Depreciaton Expense in 2019 was understated by $35,000. REQUIRED: 1. Prepare a detailed multi-step income statement (including EPS presentation) for the year ended December 31,2020. Show calculations for EPS (for continuing and discontinued sections) Show details of COST OF GOODS SOLD and OPERATING EXPENSES sections. 2. Prepare a Statement of Retained Earnings for the year ended December 31, 2020