Problem 4: (current cost accounting) adapted Sample Company was formed on January 1, 2020. The entity presented the following financial statements pertaining to the first year operations. Sample Company Statement of Financial Position December 31, 2020 Assets Cash 900.000 Accounts receivable 1,340,000 Inventory 1,800,000 Land 1,400,000 Equipment ( 10 year life) 2,400,000 Accumulated depreciation (240,000) Total assets 7.600,000 Liabilities and Stockholders Equity Accounts Payable 800.000 Income tax payable 700.000 Notes payable 1,000,000 Share capital 4,200,000 Retained earnings: Net income 1,300,000 Dividends ( 400.000) 900.00 Total liabilities and stockholders' equity 7.600,000 Sample Company Statement of Financial Position December 31, 2020 Sales 8,000,000 Less: Cost of sales Inventory, January 1 2.000,000 Add: Purchases 4.200,000 Goods available for sale 6.200.000 Less: Inventory, December 31 1,800,000 4,400,000 Gross income 3,600,000 Less: Operating expenses Expenses 1.360,000 Depreciation 240.000 1.600,000 Income before income tax 2,000,000 Less: Income tax 700.000 Net income 1,300,000 Additional information The current cost information on December 31.2020 Cost of goods sold at average current cost P 5.200,000 Inventory 2,040,000 Land 3.200,000 Equipment 2.800,000 REQUIRED: Prepare an income statement and a statement of financial position in accordance with current cost accounting