Part $2-$ Problem:

Answer the following question $on$ the answer sheet provided $in$ good form

$(10$ total points$).$ You need $to$ calculate Cost $of$ Goods Sold $(3$ points$)to$

complete the income statement $(7$ points$).$

BONUS $-$ Disclose the appropriate earnings per share information for the

company $on$ the Income Statement

Information from the accounts $of$ The Madison Company $is$ shown below:

Sales

Purchases

Operating expenses

Loss $on$ sale $of$ equipment

Operating loss from disposed component

Gain $on$ sale $of$ disposed component

Merchandise inventory, $12\mathrm{.}31\mathrm{.}2024$

Merchandise inventory, $1\mathrm{.}1\mathrm{.}24$

$$8,399,000$

$4,750,000$

$1,100,000$

$97,000$

$250,000$

$1,100,000$

$1,950,000$

$2,750,000$

There were $200,000$ shares $of$ common stock outstanding during the entire year.

REQUIRED:

Assuming $a28\%$ tax rate, prepare $a2024$ income statement for The Madison

Company $in$ good form. Use a multi$-$step format.