Reference no: EM132834397
Question - Fred Inc is a small retail company with the following data for the year ended Dec 31
Sales Revenue $800,000
Pretax loss from operation of discontinued division 15,000
Cost of goods sold 185,000
Pretax gains from foreign currency translation 30,000
Pretax deferred loss on derivative 50,000
Pretax loss on disposal of discontinued division 70,000
Selling expenses 25,000
Administrative expenses 45,000
Interest revenue 108,000
Loss on write-down of obsolete inventory 10,000
Shares of common stock outstanding, 10,000 shares.
Tax rate of 30% on all items
Required - Prepare a multiple-step income statement for Fred, Inc. for the year ended December 31, 2020 including earnings per share, and a comprehensive income statement (starting with Net Income).