Andrew’s Extreme Sports reported the following information for 2008: net sales, \($1,680,000;
cost\) of goods sold, \($1,041,600;\) selling and administrative expenses, \($369,600;\) and an unrealized holding gain from foreign currency translations of \($4,900.\) Andrew's issued common stock for \($500,000\) and paid a dividend of \($0.10\) per share on the weighted average number of shares outstanding for the year (250,000 shares). The company has January 1, 2008 balances in Common stock, \($1,500,000;\) Retained earnings, \($985,100;\) and Other comprehensive income ~ \($14,800.\)
Required:
Prepare a multiple-step income statement and a statement of stockholders’ equity that includes comparative income effects for Andrew’s Extreme Sports. Assume a 35% income tax rate.