Problem: Prepare an Income Statement. The following information is available from the accounting records of Sammy Co. for the year ended December 31, 2004:
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Selling, general, and administrative expenses
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35,000
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Accounts payable
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75,000
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Extraordinary loss from early retirement of bonds,
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net of tax expense of $30,000 .
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78,000
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Research and development expenses
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15,000
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Gain from discontinued operations net of tax savings of $10,000
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16,000
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Provision for income taxes .
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64,000
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Net sales
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545,000
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Interest expense
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40,000
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Net cash provided by operations
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168,000
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Cost of goods sold
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239,000
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Required:
a. Prepare a properly formatted Income Statement for Sammy Co