Presented below is information related to Farr Company.
Retained earnings, December 31, 2010 .............$650,000
Sales ...........................$1,400,000
Selling and administrative expenses ...............$240,000
Hurricane loss (pre-tax) on plant (extraordinary item) .......$290,000
Cash dividends declared on common stock .............$33,600
Cost of goods sold ....................$780,000
Gain resulting from computation error on depreciation
charge in 2009 (pre-tax) ..................$520,000
Other revenue.......................$120,000
Other expenses .....................$100,000
Instructions:
Prepare in good form a multiple-step income statement for the year 2011. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year.