The Huff Company presents the following partial list of account balances taken from its adjusted trial balance as of December 31, 2016:

Net sales)	$122000			operating expenses	$26000
Interest expenses	3800			Common shares, $5 a par	5500
cost of goods sold	54000			Retained earnings, 1/1/2016	45400

The following information is also available for 2016 and is not reflected in previous accounts:

The common shares have been outstanding all year. A cash dividend of $1.48 per share was declared and paid.

The land was sold for a pre-tax profit of $5,900.

Division X (a major component of the business) was sold for a pretax profit of $4,660. It had incurred a pre-tax operating loss of $9,450 during 2016.

A tornado, which is an unusual event in the area, caused a pre-tax loss of $5,370.

The income tax rate on all items of income is 30%.

Average shareholder equity is $89,000.

Required:

1. 1. Prepare a 2016 multi-step income statement for Huff. Round earnings per share calculations to two decimal places.
2. 2. Prepare a statement of retained earnings for 2016.
   3. Calculate the 2016 return on common equity. Round to one decimal.

Answer rating: 100% (QA)

To solve the problem lets go step by step 1 Prepare a 2016 multistep income statement for Huff Huff ... View the full answer