Question

The following information is related to Tamarisk Company for 2017.

Retained earnings balance, January 1, 2017		$997,920
Sales Revenue		26,276,500
Cost of goods sold		16,204,700
Interest revenue		80,500
Selling and administrative expenses		4,747,500
Write-off of goodwill		826,300
Income taxes for 2017		1,345,000
Gain on the sale of investments		117,800
Loss due to flood damage		391,000
Loss on the disposition of the wholesale division (net of tax)		446,800
Loss on operations of the wholesale division (net of tax)		86,050
Dividends declared on common stock		227,100
Dividends declared on preferred stock		75,590

Tamarisk Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Tamarisk sold the wholesale operations to Rogers Company. During 2017, there were 518,000 shares of common stock outstanding all year.

Please Prepare a Multi-Step Income Statement

Answer 1

Particulars	Amount ($)	Amount ($)
Net Sales		2,62,76,500
Less: Cost of goods sold		-1,62,04,700
Gross profit		1,00,71,800
Less: Operating Expenses
Selling and administrative expenses		-47,47,500
Operating Income		53,24,300
Other Income & Expenses:
Interest Revenue	80500
Write off of goodwill	-826300
Gain on sale of investments	117800
Net other income and Expenses		-6,28,000
Income from operations before tax		46,96,300
Less: Income taxes		-13,45,000
Net income from operations		33,51,300
Less: Extraordinary items:
Loss due to flood damage		-391000
Income from continued operations		29,60,300
Less: Loss from discontinued operations		-532850
Net Income		24,27,450
Number of common shares		518000
Earnings per share		4.69