Part 2, Comprehensive Problem Lacey Inc. manufactures dog toys. The following information was taken from the records of Lacey Inc. for the year ended 2018. All income statement amounts are before tax. The tax rate on all items is 30%.

Unusual gain $133,000

Cash dividends declared $ 210,000 Loss on discontinued operations 105,000

Retained earnings Jan. 1, 2018 $840,000 Administrative expenses 336,000

Cost of goods sold $1,190,000 Rent revenue 56,000

Selling expenses $420,000 Unusual loss 84,000

Sales $2,700,000 Unrealized holding gain on available-sale-securities $21,000

Sales discounts 40,000

Common shares of stock outstanding during 2018 were 100,000. In 2018, Lacey changed from using LIFO to Weighted-Average for inventory. The cumulative effect of this change on prior years income, prior to tax, was ($60,000). That is, net income would have been lower under Weighted-Average than LIFO. The applicable tax rate for prior years is 30%.

Required: (a) Prepare a multi-step income statement for 2018. (b) Prepare a retained earnings statement (c) Calculate comprehensive income

Based on your responses to (a) (b) and (c), enter the items requested below in the Assessment posted online.

Net Sales

Gross profit

Income from operations

Income before income tax

Income from continuing operations

Net income

Retained earnings, 12/31/2018 15.

Comprehensive income for 2018