Shown below is an income statement for 2010 that was prepared by a poorly trained bookkeeper of Howell Corporation.
Howell Corporation
INCOME STATEMENT
December 31, 2010
Sales revenue $960,000
Investment revenue 4,500
Cost of merchandise sold (409,500)
Selling expenses (150,000)
Administrative expense (210,000)
Interest expense (15,000)
Income before special items 180,000
Special items
Loss on disposal of a component of the business (45,000)
Major casualty loss (extraordinary item) (60,000)
Net federal income tax liability (18,750)
Net income $ 56,250
Required
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 50,000 shares of common stock outstanding and has a 25% federal income tax rate on all tax related items. Round all earnings per share figures to the nearest cent.