Income Statement and Retained Earnings Taylor Company uses a periodic inventory system and presents the following items derived from its December 31, 2016, adjusted trial balance:

Operating expenses	$35,800		Common stock, $15 par	$45,000
Dividend revenue	1,000		Merchandise inventory, January 1, 2016	24,000
Retained earnings, January 1, 2016	68,700		Purchases (net)	79,200
Sales (net)	139,600

The following information is also available for 2016 and is not reflected in the preceding accounts:

1. The common stock has been outstanding for the entire year. A cash dividend of $0.84 per share was declared and paid.
2. The income tax rate on all items of income is 30%.
3. The ending merchandise inventory is $27,300.
4. A pretax $4,000 loss was recognized on the sale of Division X (a component of the company). This division had earned a pretax operating income of $1,900 during 2016.
5. Damaged inventory was written off at a pretax loss of $6,600.
6. An earthquake, which is unusual in the area, caused a $3,700 pretax loss.

Required:

1. Prepare a cost of goods sold schedule for Taylor.

TAYLOR COMPANY
Cost of Goods Sold Schedule
For Year Ended December 31, 2016
Merchandise inventory, 1/1/2016	$
Add: Purchases (net)
Cost of goods available for sale	$
Less: Merchandise inventory, 12/31/2016
Cost of goods sold	$

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2. Prepare a single-step income statement for the year ended December 31, 2016. Round earnings per share computations to two decimal places.

TAYLOR COMPANY
Income Statement (Single-Step)
For Year Ended December 31, 2016
Revenues
Sales (net)	$
Dividend revenue
Total revenues		$
Expenses
Cost of goods sold	$
Operating expenses
Loss on write-off of damaged inventory
Loss from earthquake
Income tax expense
Total expenses
Income from continuing operations
Results from discontinued operations
Income from operations of discontinued division X (net of income taxes)
Loss on disposal of division X (net of income tax credit)
Net income		$
Components of Income		EPS
Income from continuing operation
Results from discontinued operations
Net income		$

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3. Prepare a 2016 retained earnings statement.

TAYLOR COMPANY
Statement of Retained Earnings
For Year Ended December 31, 2016
Retained earnings, 1/1/2016	$
Add: Net income for 2016
	$
Less: Cash dividends
Retained earnings, 12/31/2016	$

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4. Compute the 2016 net profit margin. Round to one decimal place.