Requirement

1. Vulcan’s net income can be determined by adding the unrealized loss on investments to total comprehensive income reported for the year ended October 31, 2008.

2. In order to prepare Vulcan’s income statement at October 31, 2008, the following items must be determined: sales, cost of goods sold, depreciation expense, general & administrative expense, interest expense and tax expense. These items can readily be determined from the information provided (see below—Calculation of revenues and expenses).