Comparative Incemp Statements and Basic Ees

Moka Compary reported the following selected items in the shareholders' equity section of is baisnce sheet on December $31,$ Year $3,$ and rear $4)$

$\backslash$table$[[*,$December $31],[,$Year $4,$Vear $3],[$Preferred stock, $7\%,100$ par $,$ nonconvertible,$$50,000,$$$50,060],[$Common stock, $$10$ par,$84,069,70\mathrm{.}009]]$

In addrion, it listed the following selected pretax hems as of December $31,$ vear $3$ and Year $4$:

December $31,$ Year $4$ December $31,$ Year $3$

$\backslash$table$[[,$Decenber$31,$ Vear $4$ Ded,Oecember $31,$ Vear $3],[,$Debit,Credit,Debit,Credit$],[$Sales$,,$$$140,000,4,5124,300],[$Income from discontinued operations,,$-,{?}^{**},6,000],[$Cost of goods sold,$480,000,,575,000,],[$Operating expenses,$20,000,,18,000,],[$Loss from disontinued eperations,$9,000,,-,]]$

The preferred shares yere outstanding during all of Year $3$ and Year $4$; annual dividends were declared and paid in each yeac, Durlig rear $3,2,000$ common shares metre sold for cash on October $4.$ During Year $4,$ a $20\%$ stock dielsend was declared and issuad in earty Miry. At the end of Year $3$ and Year $4,$ the commen stbck was selling for $125\mathrm{.}75$ and $$32\mathrm{.}20$ Irespectively. The company is ribject to $830\%$ income tax rate.

Mequired!

Prepare the comparative Year $3$ and Year $4$ income statements $($maltiple$-$rtep$),$ Round the rps calculations to the nearest cent.

ANOKA COAPANY

Comparative Income Statements

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