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B4-9 (Income Statement with Retained Earnings) Presented below is information related to Tao Corp. for...

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B4-9 (Income Statement with Retained Earnings) Presented below is information related to Tao Corp. for the year 2015 (amounts in thousands) . Net sales Cost of goods sold Selling expenses Administrative expenses Dividend revenue Interest revenue HK$1,200,000 Write-off of inventory due to obsolescence 780,000 Depreciation expense omitted by accident in 2014 65,000 Interest expense 48,000 Cash dividends declared 20,000 Retained earnings at December 31, 2014 7,000 Effective tax rate of 34% on all items HK$ 80,000 40,000 50,000 45,000 980,000 Instructions (a) Prepare an income statement for 2015. Assume that 60,000 ordinary shares are outstanding. (b) Prepare a retained earnings statement for 2015

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