Income Statement and Retained Earnings

Huff Company presents the following items derived from its December $31,2019,$ adjusted trial balance:

Sales $($net$)$ $$124,000$ Operating expenses $$30,400$

Interest expense $3,700$ Common stock, $$5$ par $22,000$

Cost of goods sold $66,200$ Retained earnings, $1/1/201945,800$

The following information is also available for $2019$ and is not reflected in the preceding accounts:

The common stock has been outstanding all year. A cash dividend of $$1\mathrm{.}28$ per share was declared and paid.

Land was sold at a pretax gain of $$6,300.$

Division X $($a major component of the company$)$ was sold at a pretax gain of $$4,700.$ It had incurred a $$9,500$ pretax operating loss during $2019.$

A tornado, which is an unusual event in the area, caused a $$5,400$ pretax loss.

The income tax rate on all items of income is $30\%.$

The average shareholders' equity is $$90,000.$

Required:

Question Content Area

$1.$ Prepare a $2019$ multiple$-$step income statement for Huff. Round earnings per share computations to two decimal places.

HUFF COMPANY

Income Statement $($Multi$-$Step$)$

For Year Ended December $31,2019$

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Other items

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Results from discontinued operations

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Components of Income Earnings per Common Share

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Question Content Area

$2.$ Prepare a $2019$ retained earnings statement.

HUFF COMPANY

Statement of Retained Earnings

For Year Ended December $31,2019$

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$fill in the blank $32776$ff$5$d$00$f$07$c$\_5$

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$$-$ Select $-$

Question Content Area

$3.$ Compute the $2019$ return on common equity. Round to one decimal place.

fill in the blank $5$fdfa$0065$fc$6022\_1$

$\%$