Reference no: EM131752542

Question: The Andrew Company reported the following amounts on its trial balance as of December 31, 2016:

Sales revenue:                                                             $551,000

Sales returns and allowances:                                         $75,000

Cost of goods sold:                                                       $102,000

Selling expenses:                                                          $67,000

Administrative expenses:                                                $71,000

An unusual loss due to a flood:                                        $89,000

Interest revenue:                                                          $5,600

Gain on a sale of a machine:                                            $4,400

Beginning Balance RE                                                      $420,000

Common stock shares outstanding                                        50,000

On January 1, 2016 the company decided to sell off its coffee bean unit and declared it a discontinued operation. It had an operating profit of $198,000 before tax up until the date of sale, October 1, 2016 at which time it recorded a loss of $57,000 before tax on the sale of the coffee bean division.

The auditors also discovered that in 2015, depreciation expense was understated by $30,000 before tax.

A cash dividend was paid on the common stock of $2.50 per share

Andrew Company has a tax rate of 34%. It declared a cash dividend of $1 per share in 2016.

Required: In good form using proper classifications prepare an Income Statement with Earnings per Share Calculated and Statement of Retained Earnings for the Andrew Company for the year ended December 31, 2016.