he following incorrect income statement was prepared by the accountant of the Axel Corporation:

AXEL CORPORATION

Income Statement

For the Year Ended December 31, 2013

Revenues and gains:

Sales $ 650,000

Interest and dividends 37,000

Gain from litigation settlement 87,000

Total revenues and gains 774,000

Expenses and losses:

Cost of goods sold $ 350,000

Selling expenses 64,000

Administrative expenses 84,000

Interest 31,000

Restructuring costs 60,000

Income taxes 74,000

Total expenses and losses 663,000

Net Income $ 111,000

Earnings per share $ 1.11

Required:

Prepare a multiple-step income statement for 2013 applying generally accepted accounting principles. The income tax rate is 40%. The gain from litigation settlement is considered an unusual and infrequent event and the amount is material. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.)

AXEL CORPORATION
Income Statement
For the Year Ended December 31, 2013
Operating expenses:
Total operating expenses
Other income (expense):
Total other income, net
Income before income taxes and extraordinary item
Extraordinary item gain (loss):
Earnings per share: