Shown below is an income statement for 2010 that was prepared by a poorly trained bookkeeper of Howell Corporation.
Howell Corporation
INCOME STATEMENT
31-Dec-10
Sales revenue ..................... $945,000.00
Investment revenue ................... $19,500.00
Cost of merchandise sold ................. $(408,500.00)
Selling expenses .................... $(145,000.00)
Administrative expense ................. $(215,000.00)
Interest expense ..................... $(13,000.00)
Income before special items ................ $183,000.00
Special items
Loss on disposal of a component of the business ..... $(30,000.00)
Major casualty loss (extraordinary item) ........... $(70,000.00)
Net federal income tax liability ............... $(24,900.00)
Net income ........................ $58,100.00
Instructions
Prepare a multiple-step income statement for 2010 for Howell Corporation that is presented in accordance with generally accepted accounting principles (including format and terminology). Howell Corporation has 65,000 shares of common stock authorized and issued there are 15,000 shares of treasury stock and has a 30% federal income tax rate on all tax related items. Round all earnings per share figures to the nearest cent.