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) $124,000 Operating expenses $25,200 Interest expense 3,000 Common stock, $5 par 22,000 Cost of goods sold 66,000 Retained earnings, 1/1/2019 48,200 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 $1.12 per share was declared and paid. 2. Land was sold at a pretax gain of $6,700. 3. Division X (a major component of the company) was sold at a pretaz gain of $4,670. It had incurred a $9,500 pretax operating loss during 2019 4. A tomado, which is an unusual event in the area, caused a $5,360 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders' equity is $88,000. 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 124,000 Sales (net) -66,000 Cost of goods sold 58,000 Gross profit -25,200 Operating expenses 32,800 Operating Income Other items 6,700 Gain on sale of land -5.360 Loss caused by tornado -3.000 -1,660 Interest expense 31,140 Pretax Income from continuing operations -9,840 X Income tax expense 21.300 X Income from continuing operations uncome tax expense -9,840 Income from continuing operations 21,300 X Results from discontinued operations Loss from operations of discontinued division Xnet of Income tax credit) -6,650 Galn on disposal of division X (net of Income taxes -579 X 6,071 x 20,721 x Net Income Earnings per Common Share Components of Income 0.48 x Income from continuing operations -0.13 X Results from discontinued operations 4.70 > Net Income 2. Prepare a 2019 retained earnings statement. HUFF COMPANY Statement of Retalned Earnings For Year Ended December 31, 2019 $ 48,200 Retalned earnings, 1/1/2019 20,721 X Add: Net Income for 2019 $ 68,921 X -4,928 S Less: Cash dividends 63,993 X Notained earnings, 12/31/2019 3. Compute the 2019 return on common equity. Round to one decimal place. 23.55 X %