The following information was taken from the records of Midler Cosmetics, Inc., at December 31, 2014:

Requirements
1. Using the End- of- Chapter Summary Problem (pages 637€“638) as an example, prepare Midler Cosmetics€™ single- step income statement, which lists all revenues together and all expenses together, for the fiscal year ended December 31, 2014. Include earnings-per-share data. For purposes of earnings per share, assume dividends have been declared on preferred stock as of December.
2. Evaluate income for the year ended December 31, 2014. Midler€™s top managers hoped to earn income from continuing operations equal to 16% ofsales.

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Dividends on common stock... $37,000 debit to Rctained Earning. $ 9,300 rest expens25,000 10,400 16,000 Prior-period adjustment-net of taxes Income tax expense (saving) Gain on lawsuit settlement. .35,950 Dividend revenue Continuing operations. Income from discontinued opcrations.... Extraordinary loss.4,300 Treasury stock, common 15,000 Geral expenses..81,000 628,000 6,100 (5,000 shares at cost). Sales reycnuc Income from discontinued Preferred stock, 6%, $30 par, Extraordinary los.14,000 Retained carnings, beginning, 20,000 as originally reported202,000 Selling expenses... 36,000 shares authorized Cost of goods sold314,200 390,000