Question: From the following information for the year 2012, prepare an income statement and a statement of shareholders' equity, under GAAP rules, for a company with

From the following information for the year 2012, prepare an income statement and a statement of shareholders' equity, under GAAP rules, for a company with shareholders' equity at the beginning of 2012 of $3,270 million. Amounts are in millions.

Sales ................................................................................. $4,458

Common dividends paid ..................................................... 140

Selling expenses ................................................................ 1,230

Research and development costs ...................................... 450

Cost of goods sold ............................................................. 3,348

Share issues .......................................................................... 680

Unrealized gain on securities available for sale .................. 76

Income taxes ....................................................................... (200)

Also calculate comprehensive income and net payout. Income taxes are negative. How can this be?

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