The following information was taken from the records of Underwood Company at June 30, 2007:

Requirement 

Prepare a multistep income statement for Underwood Company for the fiscal year ended June 30, 2007. Include earnings per share. 

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Selling expenses General expenses Gain on discontinued operations Retained earnings, beginning $120,000 Common stock, no-par, 22.000 75,000 5.000 shares authorized and issued Preferred stock. 6%. S25 par. $350,000 63,000 4,000 shares issued 100,000 Cost of goods sold 275,000 Income tax expense: Treasury stock, common Continuing operations 28,000 (2.000 shares) 28.000 Gain on discontinued Net sales revenue 565,000 operations 2,000