Reference no: EM131299844

The following is a partial list of the account balances, after adjustments, of World Inc. on December 31, 2013:

Depreciation Expense:  Buildings and Office Equipment	$   10,875.00
Sales Commissions and Salaries	$   13,650.00
Inventory, January 1, 2013	$   28,350.00
Sales Supplies Used	$     4,200.00
Retained Earnings, January 1, 2013	$   62,775.00
Purchase Returns and Allowances	$     4,650.00
Bad Debt Expense	$     2,025.00
Transportation-In	$   10,125.00
Sales Discounts Taken	$     3,675.00
Purchases	$ 129,750.00
Delivery Expense	$     5,775.00
Office Supplies Expense	$     1,050.00
Common Stock, $10 par	$   60,000.00
Loss on Sale of Office Equipment (pretax)	$     3,750.00
Insurance and Property Tax Expense	$     6,375.00
Sales	$ 255,525.00
Rent Revenue	$     5,175.00
Office and Administrative Salaries Expense	$   24,000.00
Promotion and Advertising Expense	$   12,750.00
Sales Returns and Allowances	$     9,075.00
Purchase Discounts Taken	$     3,075.00
Depreciation Expense:  Sales Equipment	$     7,200.00
Interest Expense	$     2,775.00

Required:

A. Prepare separate supporting schedules for cost of goods sold, selling expenses, general and administrative expenses, and depreciation expense.

B. Prepare a 2013 multiple-step income statement for World Inc. including Components of Earnings Per Share (EPS) presentation.

C. Prepare a 2013 retained earnings statement.

The following information is also available:

1. The company declared and paid a cash dividend on its common stock of $0.45 per share

The stock was outstanding the entire year.

2. A physical count determined that the December 31, 2013, ending inventory is $25,575.00

3. A tornado destroyed a warehouse, resulting in a pretax loss of $9,000.00

4. On May 1, 2013, the company sold an unprofitable division (M).

From January through April, Division M had incurred a pretax operating loss of $6,525.00
Division M was sold at a pretax gain of $7,500.00

5. The company is subject to an income tax rate of 30%