Income Statement and Retained Earnings The Huff Company presents the following partial list of account balances taken from its December 3 1 , Year 9 adjusted trial balance Sales ( net ) $ 1 2 3 , 0 0 0 Operating expenses $ 3 0 , 6 0 0 Interest expense 4 , 5 0 0 Common stock, $ 5 par 2 2 , 0 0 0 Cost of goods sold 6 7 , 0 0 0 Retained earnings, 1 1 Year 9 4 6 , 8 0 0 The following information is also available for Year 9 and is not reflected in the preceding accounts The common stock has been outstanding all year A cash dividend of $ 1 2 per share was declared and paid Land was sold at a pretax gain of $ 6 , 7 0 0 Division X ( a major component of the company ) was sold at a pretax gain of $ 4 , 6 3 0 It had incurred a $ 9 , 4 3 0 pretax operating loss during Year 9 A tornado, which is an unusual event in the area, caused a $ 5 , 4 0 0 pretax loss The income tax rate on all items of income is 3 0 The average common shareholders' equity is $ 8 8 , 0 0 0 Required Question Content Area 1 Prepare a Year 9 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 3 1 , Year 9 Sales ( net ) $Sales ( net ) 1 2 3 , 0 0 0 Cost of goods sold Cost of goods sold 6 7 , 0 0 0 Gross profit $Gross profit 5 6 , 0 0 0 Operating expenses Operating expenses 3 0 , 6 0 0 Operating income $Operating income 2 5 , 4 0 0 Other items Gain on sale of land $Gain on sale of land 6 , 7 0 0 Operating income Operating income 2 5 , 4 0 0 Interest expense Interest expense 4 , 5 0 0 Interest expense 2 7 , 6 0 0 Pretax income from continuing operations $Pretax income from continuing operations 2 7 , 6 0 0 Income tax expense Income tax expense 8 , 2 8 0 Income from continuing operations $Income from continuing operations 1 9 , 3 2 0 Results from discontinued operations Income from continuing operations $Income from continuing operations Select Select $ Select Components of Income Earnings per Common Share $ Select Select $ Select Feedback Area Feedback Question Content Area 2 Prepare a Year 9 retained earnings statement HUFF COMPANY Statement of Retained Earnings For Year Ended December 3 1 , Year 9 $ Select Select $fill in the blank 4 4 6 ef 5 ff 3 0 3 b 0 6 f 5 Select $ Select Feedback Area Feedback Question Content Area 3 Compute the Year 9 return on common equity Round to one decimal place fill in the blank 8 6 9 d 4 3 0 0 b 0 6 ef 9 3 1

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Income Statement and Retained Earnings The Huff Company presents the following partial list of account balances taken from its December 3 1 , Year 9 adjusted trial balance  Sales ( net ) $ 1 2 3 , 0 0 0 Operating expenses $ 3 0 , 6 0 0 Interest expense 4 , 5 0 0 Common stock, $ 5 par 2 2 , 0 0 0 Cost of goods sold 6 7 , 0 0 0 Retained earnings, 1   1   Year 9 4 6 , 8 0 0 The following information is also available for Year 9 and is not reflected in the preceding accounts  The common stock has been outstanding all year  A cash dividend of $ 1   2 per share was declared and paid  Land was sold at a pretax gain of $ 6 , 7 0 0   Division X ( a major component of the company ) was sold at a pretax gain of $ 4 , 6 3 0   It had incurred a $ 9 , 4 3 0 pretax operating loss during Year 9   A tornado, which is an unusual event in the area, caused a $ 5 , 4 0 0 pretax loss  The income tax rate on all items of income is 3 0     The average common shareholders' equity is $ 8 8 , 0 0 0   Required  Question Content Area 1   Prepare a Year 9 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 3 1 , Year 9 Sales ( net ) $Sales ( net ) 1 2 3 , 0 0 0 Cost of goods sold Cost of goods sold 6 7 , 0 0 0 Gross profit $Gross profit 5 6 , 0 0 0 Operating expenses Operating expenses 3 0 , 6 0 0 Operating income $Operating income 2 5 , 4 0 0 Other items Gain on sale of land $Gain on sale of land 6 , 7 0 0 Operating income Operating income 2 5 , 4 0 0 Interest expense Interest expense   4 , 5 0 0 Interest expense 2 7 , 6 0 0 Pretax income from continuing operations $Pretax income from continuing operations 2 7 , 6 0 0 Income tax expense Income tax expense   8 , 2 8 0 Income from continuing operations $Income from continuing operations 1 9 , 3 2 0 Results from discontinued operations Income from continuing operations $Income from continuing operations   Select     Select   $   Select   Components of Income Earnings per Common Share $   Select     Select   $   Select   Feedback Area Feedback Question Content Area 2   Prepare a Year 9 retained earnings statement  HUFF COMPANY Statement of Retained Earnings For Year Ended December 3 1 , Year 9 $   Select     Select   $fill in the blank 4 4 6 ef 5 ff 3 0 3 b 0 6 f   5   Select   $   Select   Feedback Area Feedback Question Content Area 3   Compute the Year 9 return on common equity  Round to one decimal place  fill in the blank 8 6 9 d 4 3 0 0 b 0 6 ef 9 3   1

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Income Statement and Retained Earnings The Huff Company presents the following partial list of account balances taken from its December 3 1 , Year 9

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