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Income Statement and Retained Earnings The Huff Company presents the following partial list of account balances taken from its December 31, 2019 adjusted trial balance:

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Income Statement and Retained Earnings The Huff Company presents the following partial list of account balances taken from its December 31, 2019 adjusted trial balance: Sales (net) $126,000 Operating expenses $29,200 Interest expense 3,100 Common stock, $5 par 11,000 Cost of goods sold 57,000 Retained earnings, 1/1/2019 46,900 The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of $1.52 per share was declared and paid. 2. Land was sold at a pretax gain of $5,900. 3. Division X (a major component of the company) was sold at a pretax gain of $4,620. It had incurred a $9,500 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a $5,390 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders' equity is $90,000. Required: 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 Sales (net) Cost of goods sold Gross profit Operating expenses Operating expenses Operating Income Other items Gain on sale of land Results from discontinued operations I Components of Income Earnings per Common Share 2. Prepare a 2019 retained earnings statement. HUFF COMPANY Statement of Retained Earnings For Year Ended December 31, 2019 Retained earnings, 1/1/2019 3. Compute the 2019 return on common equity. Round to one decimal place. %

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