Huff Company presents the following items derived from its December 31, 2016, adjusted trial balance:

The following information is also available for 2016 and is not reflected in the preceding accounts:
1. The common stock has been outstanding all year. A cash dividend of $1.28 per share was declared and paid.
2. Land was sold at a pretax gain of $6,300.
3. Division X (a major component of the company) was sold at a pretax gain of $4,700. It had incurred a $9,500 pretax operating loss during 2016.
4. A tornado, which is an unusual event in the area, caused a $5,400 pretax loss.
5. The income tax rate on all items of income is 30%.
6. The average shareholders€™ equity is $90,000.
Required:
1. Prepare a 2016 multiple-step income statement for Huff.
2. Prepare a 2016 retained earnings statement.
3. Compute the 2016 return on common equity (Net Income / Average Shareholders€™ Equity).

Sales (net) Interest expense Cost of goods sold $30,400 22,000 45,800 $124,000 Operating expenses 3,700 Common stock, $5 par 66,200 Relained eamings, 1/1/2016