Question: The Andrew Company reported the following amounts on its trial balance as of December 31, 2016:
Sales revenue: $551,000
Sales returns and allowances: $75,000
Cost of goods sold: $102,000
Selling expenses: $67,000
Administrative expenses: $71,000
An unusual loss due to a flood: $89,000
Interest revenue: $5,600
Gain on a sale of a machine: $4,400
Beginning Balance RE $420,000
Common stock shares outstanding 50,000
On January 1, 2016 the company decided to sell off its coffee bean unit and declared it a discontinued operation. It had an operating profit of $198,000 before tax up until the date of sale, October 1, 2016 at which time it recorded a loss of $57,000 before tax on the sale of the coffee bean division.
The auditors also discovered that in 2015, depreciation expense was understated by $30,000 before tax.
A cash dividend was paid on the common stock of $2.50 per share
Andrew Company has a tax rate of 34%. It declared a cash dividend of $1 per share in 2016.
Required: In good form using proper classifications prepare an Income Statement with Earnings per Share Calculated and Statement of Retained Earnings for the Andrew Company for the year ended December 31, 2016.