Prepare a multi step income statement.

30% tax rate and 100,000 shares of common stock where outstanding during the year.

Retained earnings December 31, 2012

Retained earnings Dec 31,2012 2350000

Sales 2600000

Selling and administrative expenses 240000

Earthquake loss (pre-tax) on plant 250000

Cash dividends declared on common stock 53600

Cost of goods sold 1000000

Gain resulting from computation error on depreciation charge in 2009 (pre-tax) 520000

Other revenue 80000

Other expenses 50000