Problem:
L Company's accounting system listed the following information for the company's 2007 fiscal year (in millions).
Average common shares outstanding 2.5
Cost of goods sold $173.2
Extraordinary gain 19.4
Gain on sale of securities 7.4
General and administrative expenses 73.3
Income taxes (35% of pretax income)
Interest expense 10.0
Interest Income 5.7
Loss associated with cumulative effect
of accounting change 4.0
Loss from discontinued operations 12.3
Sales of merchandise 318.6
Selling expenses 28.5
Prepare an income statement for L Company for the year ended December 31, 2007. Assume that the tax rate of 35% applies to special items as well as ordinary income.