INCOME STATEMENT PREPARATION Fast Feet Corporation (FF) manufactures and sells professional running shoes and had the following income statement items for the year ended December 31, 2021: Cost of goods sold Administrative expenses $ 4,725,000 495,000 Interest income 90,000 Net sales Restructuring costs Selling expenses $8,100,000 360,000 630,000 The following additional information is available. 1. Income tax expense has not yet been accrued. The income tax rate is 14% on all items of income (loss). 2. During the year, the company disposed of its fashion shoe division and incurred a pre-tax loss from operations of $720,000. There was a gain on disposal of the division's assets of $900,000 thousand before tax. 3. One of FF's subsidiaries, Copri Piedi, is located in Italy, where the company manufactures and sells specialized running socks. For 2021 they incurred a loss on foreign currency translation of $337,500 before tax. 4. FF maintains its shoe inventory on a FIFO basis. During 2021 its auditors discovered that a material error in calculating inventory was made three years ago. The after-tax effect of that mistake would have decreased income by $135,000. 5. In April of 2021, a major vandalism occurred at FF's headquarters causing extensive damage to the building and disruption to the manufacturing lines. FF received an insurance settlement that netted a pretax gain of $1.35 million. 6. 225,000 shares of common stock were outstanding throughout 2021. Retained Earnings at the beginning of the year was $5,555,555 (cool number, huh?). 7. During 2021 FF paid dividends of $1.50 per common share. 8. FF operates a chain of retail shoe stores. In February of 2021 the employees in the northeast region went on strike to obtain additional medical benefits. FF experienced a loss of $157,500 because of the strike. (Boy, it was a rough year!) Required: 1. Prepare a multiple step income statement for 2021, including earnings per share (EPS) disclosures for Fast Feet Corporation. 2. Prepare a separate Statement of Comprehensive Income for 2021. 3. Prepare a Statement of Retained Earnings for 2021. Your work should look professional as if you were presenting these financial statements to a client. For example, (1) no abbreviations, (2) use dollar signs, underlines, and double underlines appropriately. (3) use commas for amounts greater than $999, (4) use appropriate headings and (5) round all amounts to dollars (do not show cents)