with explain please,,, thank uu

E4.9 (LO2, 3, 4, 5) (Income Statement with Retained Eamings) Presented below is information related to Tao Ltd. for the year 2019 (amounts in thousands) Net sales HK$1,200,000 Write-off of inventory due to HKS obsolescence 80,000 Cost of goods sold 780,000 Depreciation expense omitted by 40,000 accident in 2018 Selling expenses 65,000 Interest expense 50,000 Administrative 48,000 Cash dividends declared 45,000 expenses 980.000 Dividend revenue 20.000 Retained earnings at December 31, 2018 Interest revenue 7.000 Effective tax rate of 34% on all items Instructions a. Prepare an income statement for 2019. Assume that 60,000 ordinary shares are outstanding b. Prepare a retained earnings statement for 2019