Presented below is information related to Brokaw Corp. for the year 2010.

Net sales $1,200,000 Write-off inventory due to obsolescence $80,000
Cost of goods sold 780,000 Depr exp omitted by accident in 2009 40,000
Selling expenses 65,000 Casualty loss (extraordinary exp) before taxes 50,000
Administrative expenses 48,000 Dividends declared 45,000
Dividend revenue 20,000 Ret earnings at December 31, 2009 980,000
Interest revenue 7,000 Effective tax rate of 34% on all items

(a) Prepare a multiple-step income statement for 2010. Assume that 60,000 shares of common stock are outstanding. (Round per share common stock to 2 decimal places, e.g. 5.25 and all other answers to zero decimal places, e.g. 2,250. For per share common stock use either a negative sign preceding the number, e.g. 0.45 or parenthesis, e.g. (0.45) for negative numbers. Enter all other amounts as positive amounts and subtract where necessary. List multiple entries from largest to smallest amount, e.g. 10, 5, 2.)

BROKAW CORP.
Income Statement
For the Year Ended December 31, 2010
Sales Revenue:
______________________ $___________________
_______________________ ____________________
Gross Profit ___________________

Operating Expenses:
__________________ $__________________
__________________ __________________ ___________________
Income from Operations ___________________

Other Revenues and Gains:
__________________ __________________
__________________ __________________ ___________________
___________________

Other Expenses and Losses:
___________________ ____________________
Income before taxes and extraordinary items _____________________
____________________ ____________________
Income before extraordinary item _____________________
Extraordinary Item
____________________ ___________________
Less: ___________________ ___________________ ____________________
Net Income $ ___________________

Per Share of Common Stock:
Income before extraordinary item $____________________
Extraordinary item, net of tax ____________________
Net Income $___________________


(b) Prepare a separate retained earnings statement for 2010. (Enter all amounts as positive amounts and subtract where necessary.)

BROKAW CORP.
Retained Earnings Statement
For the Year Ended December 31, 2010
____________________________ $_______________________
____________________________ _______________________
Retained earnings, Jan 1, as adjusted _______________________
Add: ______________________________ _______________________
_______________________
Less: ______________________________ ________________________
Retained Earnings, Dec 31 $_______________________

Answer rating: 100% (QA)

A Sales Revenue Net sales Cost of goods sold Gross profit BROKAW CORP Income Statement For the Year ... View the full answer