Reference no: EM132611571
Question - The ledger of Sheridan Corporation at November 30, 2017, contains the following summary data:
Cash dividends-common $63,000
Operating expenses $1,106,000
Cash dividends-preferred 23,000
Other comprehensive income-loss on equity investments (before income tax) 76,000
Common shares 318,000
Rent revenue 44,000
Cost of goods sold 7,240,000
Preferred shares ($5 noncumulative) 386,000
Depreciation expense 346,000
Retained earnings, December 1, 20167 37,000
Sales 9,016,000
Your analysis reveals the following additional information:
1. The company has a 25% income tax rate.
2. The communications devices division was discontinued on August 31. The profit from operations for the division up to that day was $16,200 before income tax. The division was sold at a loss of $73,000 before income tax.
3. There were 200,000 common and 5,000 preferred shares issued on December 1, 2016, with no changes during the year.
Required -
1. Prepare multiple-step income statement for the year.
2. Prepare statement of comprehensive income as a separate statement.