The Stahl Metalworks Corp. general ledger contained the following information at September 30, 2020:

Cost of goods sold.............................................................................................. $157,500
Loss on sale of property........................................................................................ 17,500
Sales returns............................................................................................................. 3,500
Income tax expense, continuing operations...................................................... 12,769
Income tax saving, discontinued segment—operating loss............................. (1,800)
Income tax expense, discontinued segment—gain on sale................................. 600
Gain on sale of discontinued segment................................................................. 1,750
Interest expense...................................................................................................... 4,250
General expenses.................................................................................................. 42,000
Interest revenue....................................................................................................... 1,750
Preferred shares, $1.00, 15,000 shares authorized,
7,500 shares issued and outstanding................................................................... 93,750
Retained earnings, October 1, 2019..................................................................... 30,500
Selling expenses...................................................................................................... 50,750
Common shares, 50,000 shares authorized, issued, and outstanding.......... 165,000
Sales revenue......................................................................................................... 315,000
Dividends.................................................................................................................. 11,000
Operating loss, discontinued segment................................................................... 5,250
Loss on insurance settlement................................................................................. 4,000

Required

1. Prepare a single-step income statement, including earnings per share, for Stahl Metalworks Corp. for the fiscal year ended September 30, 2020. List expenses from highest to lowest amount.

2. Evaluate income for the year ended September 30, 2020, in terms of the outlook for the 2021 fiscal year. Assume 2020 was a typical year and that Stahl Metalworks Corp.’s managers hoped to earn income from continuing operations equal to 10 percent of net sales.