Problem:
Prepare an income statement
Selling,general, and administrative expenses $51,000
Accounts payable 85,000
Extraordinary gain from early retirement of bonds,
net of tax expense of $28,000 104,000
Research and development expenses 37,000
Loss from discontinued operations net of tax savings of $5,000 16,000
Provision of income tax 74,000
Net sales 579,000
Interest expense 64,000
Net cash provided by operations 148,000
Cost of goods sold 272,000