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.