Misclassifications

Rox Corporation's multiple-step income statement and retained earnings statement for the year ended December 31, 2016, as developed by its bookkeeper, are shown here:

Revenue Statement December 31, 2016
Sales (net)			$179,000
Plus: Income from operations of discontinued Division P (net of $960 income taxes)			2,240
Less: Dividends declared ($1.50 per common share)			(7,500)
Net revenues			$173,740
Less: Selling expenses			(19,000)
Gross profit			$154,740
Less Operating expenses:
Interest expense	$4,100
Loss on sale of Division P (net of $1,200 income tax credit)	2,800
Cost of goods sold	110,700
Income tax expense on income from continuing operations	5,370		(122,970)
Total operating expenses			$31,770
Operating income
Miscellaneous items:
Dividend revenue	$1,800
General and administrative expenses	(24,300)		(22,500)
Income before unusual items			$9,270
Unusual items:
Loss on sale of land	$(4,800)
Correction of error in last year's income (net of $1,500 income taxes)	3,500		(1,300)
Net income			$7,970

Retained Earnings Statement December 31, 2016
Beginning retained earnings	$62,850
Add: Net income	7,970
Adjusted retained earnings	$70,820
Less: Loss from theft (net of $2,760 income tax credit)	(6,440)
Ending retained earnings	$64,380

You determine that the account balances listed on the statements are correct but are incorrectly classified in certain cases. The company faces a 30% tax rate. No shares of common stock were issued or retired during 2016.

Required:

2. Prepare a correct multiple-step income statement for 2016. Round earnings per share computations to two decimal places.

ROX CORPORATION
Income Statement (Multi-Step)
For Year Ended December 31, 2016
		$
		$
Operating expenses
	$
Total operating expenses
		$
Other items
	$
		$
		$
Results from discontinued operations
	$
		$
Components of Income		EPS
		$
		$

3. Prepare a statement of retained earnings for the year ended December 31, 2016.

ROX CORPORATION
Statement of Retained Earnings
For Year Ended December 31, 2016
	$
	$
	$
	$