Selected information about income statement accounts for the Ajax Company is presented below for the fiscal year ended December 31, 2016.
Sales .................................................. $6,200,000
Cost of goods sold ............................. 3,500,000
Administrative and selling expenses ... 1,500,000
Several events occurred during 2016 that have not yet been reflected in the above accounts:
1. A landslide caused $75,000 in uninsured damages to a warehouse. The landslide was considered to be an infrequent but not unusual event.
Interest revenue in the amount of $100,000 was earned.
The company incurred restructuring costs of $250,000.
Interest expense on debt totaled $150,000.
Investments were sold for a loss of $40,000.
Required: Prepare a multiple-step income statement for the Ajax Company for the year 2016, including income taxes computed at 40%. Ignore EPS disclosures.