Prepare in good form Cats fiscal 2018 income statement beginning with Income

before Income Tax.

Cat Company is preparing its fiscal 2018 income statement and has determined that it will report

income before income tax of $750,000. Appropriately excluded from this amount is a pre-tax loss

of $50,000 that resulted from the disposal of the companys textile division, an event that qualifies

for classification as discontinued operations.Cat has a 30% income tax rate and the following capital structure:

8% Cumulative Preferred Stock $100 par value,

10,000 shares issued and outstanding $1,000,000

Common Stock $10 par value,

100,000 shares issued and outstanding $1,000,000