Exercise 4-6

The following balances were taken from the books of Sandhill Corp. on December 31, 2017.

Interest revenue		$87,450		Accumulated depreciationequipment		$41,450
Cash		52,450		Accumulated depreciationbuildings		29,450
Sales revenue		1,381,450		Notes receivable		156,450
Accounts receivable		151,450		Selling expenses		195,450
Prepaid insurance		21,450		Accounts payable		171,450
Sales returns and allowances		151,450		Bonds payable		101,450
Allowance for doubtful accounts		8,450		Administrative and general expenses		98,450
Sales discounts		46,450		Accrued liabilities		33,450
Land		101,450		Interest expense		61,450
Equipment		201,450		Notes payable		101,450
Buildings		141,450		Loss from earthquake damage		151,450
Cost of goods sold		622,450		Common stock		501,450
				Retained earnings		22,450

Assume the total effective tax rate on all items is 34%. Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year. (Round earnings per share to 2 decimal places, e.g. 1.48.)

SANDHILL CORP. Income Statement $ $