INCOME STATEMENT PREPARATION Sep 157 Lassie Corporation operates in the Texas Panhandle and had the following income statement items for the year ended December 31, 2020: Administrative expenses Cost of goods sold Interest income $ 1,100,000 10,500,000 200,000 Net sales Restructuring costs Selling expenses $18,000,000 800,000 1.400.000 The following additional information is available. 1. During the year, the company disposed of its pet food manufacturing division and incurred a pre-tax loss from operations of $1.6 million. There was a gain on disposal of the division's assets of $2 million before tax. 2. One of Lassie's subsidiaries, Pepe LaPeu, is located in France, where the company breeds French Poodles (what else?). For 2020 they incurred a loss on foreign currency translation of $750,000 before tax. 3. In July of 2020, a nearby fireworks stand exploded causing a grassfire which burned down Lassie's Dog Training facilities. Lassie received an insurance settlement that netted a pretax gain of $3 million. (How can they have a gain from a fire loss?!?!?) 4. Lassie operates a chain of retail pet stores. In September of 2020 the employees in the southwest region went on strike to obtain an increase in their profit-sharing percentage. Lassie experienced a loss of $350,000 as a result of the strike. 5. Lassie maintains its pet food inventory on a LIFO basis. During 2020 their auditors discovered that a material error in calculating inventory was made in FYE (fiscal year end) 2020. The after-tax effect of that mistake would have decreased income by $300,000. 6. 500,000 shares of common stock were outstanding throughout 2020. Retained Earnings at the beginning of the year was $12,345,678 (I thought that was a neat number). During 2020 Lassie paid dividends of $2.00 per common share. 7. Income tax expense has not yet been accrued. The income tax rate is 30% on all items of income (loss). Required: 1. Prepare a multiple step income statement for 2020, including Earnings per share (EPS) disclosures for Lassie. 2. Prepare a separate Statement of Comprehensive Income for 2020. 3. Prepare a Statement of Retained Earnings for 2120. 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) INCOME STATEMENT PREPARATION Sep 157 Lassie Corporation operates in the Texas Panhandle and had the following income statement items for the year ended December 31, 2020: Administrative expenses Cost of goods sold Interest income $ 1,100,000 10,500,000 200,000 Net sales Restructuring costs Selling expenses $18,000,000 800,000 1.400.000 The following additional information is available. 1. During the year, the company disposed of its pet food manufacturing division and incurred a pre-tax loss from operations of $1.6 million. There was a gain on disposal of the division's assets of $2 million before tax. 2. One of Lassie's subsidiaries, Pepe LaPeu, is located in France, where the company breeds French Poodles (what else?). For 2020 they incurred a loss on foreign currency translation of $750,000 before tax. 3. In July of 2020, a nearby fireworks stand exploded causing a grassfire which burned down Lassie's Dog Training facilities. Lassie received an insurance settlement that netted a pretax gain of $3 million. (How can they have a gain from a fire loss?!?!?) 4. Lassie operates a chain of retail pet stores. In September of 2020 the employees in the southwest region went on strike to obtain an increase in their profit-sharing percentage. Lassie experienced a loss of $350,000 as a result of the strike. 5. Lassie maintains its pet food inventory on a LIFO basis. During 2020 their auditors discovered that a material error in calculating inventory was made in FYE (fiscal year end) 2020. The after-tax effect of that mistake would have decreased income by $300,000. 6. 500,000 shares of common stock were outstanding throughout 2020. Retained Earnings at the beginning of the year was $12,345,678 (I thought that was a neat number). During 2020 Lassie paid dividends of $2.00 per common share. 7. Income tax expense has not yet been accrued. The income tax rate is 30% on all items of income (loss). Required: 1. Prepare a multiple step income statement for 2020, including Earnings per share (EPS) disclosures for Lassie. 2. Prepare a separate Statement of Comprehensive Income for 2020. 3. Prepare a Statement of Retained Earnings for 2120. 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)