Problem
Single/Multiple-step income statement. (Worth 5 Points) Presented below is information related to Farr Company.
|
Retained earnings, December 31, 2012
|
$ 650,000
|
|
Sales revenue
|
1,400,000
|
|
Selling and administrative expenses
|
240,000
|
|
Hurricane loss (pre-tax) on plant (extraordinary item)
|
270,000
|
|
Cash dividends declared on common stock
|
33,600
|
|
Cost of goods sold
|
830,000
|
|
Gain resulting from computation error on depreciation charge in 2011 (pre-tax)
|
520,000
|
|
Other revenue
|
120,000
|
|
Other expenses
|
100,000
|
Instructions
Prepare in good form a single step / multiple-step income statement for the year 2013. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year.