Prepare in good form a single step income statement

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Reference no: EM131800759

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.

Reference no: EM131800759

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