Reference no: EM132056224
Problem - Presented below is information related to Farr Company.
Retained earnings, December 31, 2014 $ 667,000
Sales revenue 1,505,400
Selling and administrative expenses 242,700
Hurricane loss (pre-tax) on plant (extraordinary item) 294,200
Cash dividends declared on common stock 33,600
Cost of goods sold 887,700
Gain resulting from computation error on depreciation charge in 2013 (pre-tax) 516,500
Other revenue 128,500
Other expenses 102,600
Prepare in good form a multiple-step income statement for the year 2015. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year.