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CHAPTER 4 HOMEWORK PROBLEM The Houston Manufacturing Company presents the following partial ists of account balances, atter adjustments, as of Eecember 31, 2016: cisfolowing information is also avaliable. but is not reflected in the preceding accounts: 1. The company soid Drhion E (a component of the company) an Autust 1, 2016. Thas action retlects a stratepic shift for the campany. During 2016, Dersion E incured a pretax foss from operations of S20. However, because the acquiring company could vertically integrate Division E into ks facillies, there was a $40 pretax gain on the sale 2. The commoa stock was outstanding for the entire vear, A cash dividend on $1 per thare was declared and pard in 3016. 3. Asumea 30w taxrate ITEOIRED: 2. Prepare a 2016 sitigie-step income statement for the Housted Manutocturing Coovany