MULTIPLE STEP INCOME STATEMENT (HOMEWORK PROBLEM)

Prepare a multiple step income statement for ABC Corp. (includes EPS) for the year 2017 and the related statement of retained earnings using the following data:

Interest expense -------------------------------------------------------------13,000 Loss on disposal of a component of the business --------------------30,000 Loss from operations of X division (discontinued operations) -----42,000 Dividends declared and paid ----------------------------------------------20,000 Sales revenue ------------------------------------------------------------------1,000,000 Dividend revenue --------------------------------------------------------------19,500 Cost of merchandise sold ----------------------------------------------------308,500 Selling expenses ----------------------------------------------------------------145,000 Administrative expenses ------------------------------------------------------215,000 Retained Earnings as of January 1, 2015 --------------------------------200,000 30% Income tax Rate 50,000 weighted average shares of common stock outstanding