Exercise 1: Income Statement: Presented below is information related to Farr Company. Retained earnings, December 31, 2010 Sales Selling and administrative expenses Hurricane loss (pre-tax) on plant (extraordinary item) Cash dividends declared on common stock Cost of goods sold Ga 650,00 1,500,000 240,000 290,000 33,600 780,000 in resulting from computation error on depreciation charge in 2009 (pre-tax) Other revenue Other expenses 520,000 120,000 100,000 Instructions Prepare in good form a multiple-step income statement for the year 2011. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year