Exercise 17-14A Income statement presentation LO A2

In 2013, Randa Merchandising, Inc., sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows:

	Item		Debit			Credit
1.	Net sales				$	2,900,000
2.	Gain on states condemnation of company property (net of tax)					230,000
3.	Cost of goods sold	$	1,480,000
4.	Income taxes expense		217,000
5.	Depreciation expense		232,500
6.	Gain on sale of wholesale business segment (net of tax)					775,000
7.	Loss from operating wholesale business segment (net of tax)		444,000
8.	Salaries expense		640,000

Prepare the income statement for calendar year 2013. (Loss amounts should be indicated with a minus sign.)

RANDA MERCHANDISING, INC.
Income Statement
For Year Ended December 31, 2013
Net sales		$2,900,000
Expenses:
Depreciation expense	232,500
Total expenses
		2,667,500
Discontinued segment:
		0
		2,667,500
		$2,667,500