Prepare in good form a multiple-step income statement for


Problem - Presented below is information related to Farr Company.

Retained earnings, December 31, 2014 $ 667,000

Sales revenue 1,505,400

Selling and administrative expenses 242,700

Hurricane loss (pre-tax) on plant (extraordinary item) 294,200

Cash dividends declared on common stock 33,600

Cost of goods sold 887,700

Gain resulting from computation error on depreciation charge in 2013 (pre-tax) 516,500

Other revenue 128,500

Other expenses 102,600

Prepare in good form a multiple-step income statement for the year 2015. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year.

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Accounting Basics: Prepare in good form a multiple-step income statement for
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