Problem 4-01 The following information is related to Sheffield Company for 2020. Retained earnings balance, January 1, 2020 Sales Revenue Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill Income taxes for 2020 Gain on the sale of investments Loss due to flood damage Loss on the disposition of the wholesale division (net of tax) Loss on operations of the wholesale division (net of tax) Dividends declared on common stock Dividends declared on preferred stock $1,195,600 30,500,000 19,520,000 85,400 5,734,000 1,000,400 1,517,680 134,200 475,800 536,800 109,800 305,000 97,600 Sheffield Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Sheffield sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year. Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49.) SHEFFIELD COMPANY Income Statement December 31, 2020 T Sales Revenue 30,500,000 Cost of Goods Sold (19,520,000) Gross Profit / (Loss) 10,980,000 T Selling and Administrative Expenses (5,734,000) | Income from Operations T 5,246,000 T Other Revenues and Gains T Interest Revenue 85,400 1 Gain on the Sale of Investments 134,200.00 219,600.00 T Other Expenses and Losses Write-off of Goodwill (1,000,400.00) I Uller Experises allu LUSSES T Write-off of Goodwill (1,000,400.00) ............. 475,800 x ....... Loss from Flood Damage 1476200 X LLLLLLLLLLLLLLLLLLLL Income from Continuing Operations Before Income Tax 4,465,200.00 | Income Tax (1,517,680.00) T Income from Continuing Operations 2,947,520.00 Discontinued Operations T Loss on Operations, Net of Applicable Tax 4 109,800.00 I Loss on Disposal, Net of Applicable Tax 536,800.00 > (646,600.00) > Net Income / (Loss) T 1,825,120.00 Earnings Per Share ...... T Income from Continuing Operations 5.69 Problem 4-01 The following information is related to Sheffield Company for 2020. Retained earnings balance, January 1, 2020 Sales Revenue Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill Income taxes for 2020 Gain on the sale of investments Loss due to flood damage Loss on the disposition of the wholesale division (net of tax) Loss on operations of the wholesale division (net of tax) Dividends declared on common stock Dividends declared on preferred stock $1,195,600 30,500,000 19,520,000 85,400 5,734,000 1,000,400 1,517,680 134,200 475,800 536,800 109,800 305,000 97,600 Sheffield Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Sheffield sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year. Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49.) SHEFFIELD COMPANY Income Statement December 31, 2020 T Sales Revenue 30,500,000 Cost of Goods Sold (19,520,000) Gross Profit / (Loss) 10,980,000 T Selling and Administrative Expenses (5,734,000) | Income from Operations T 5,246,000 T Other Revenues and Gains T Interest Revenue 85,400 1 Gain on the Sale of Investments 134,200.00 219,600.00 T Other Expenses and Losses Write-off of Goodwill (1,000,400.00) I Uller Experises allu LUSSES T Write-off of Goodwill (1,000,400.00) ............. 475,800 x ....... Loss from Flood Damage 1476200 X LLLLLLLLLLLLLLLLLLLL Income from Continuing Operations Before Income Tax 4,465,200.00 | Income Tax (1,517,680.00) T Income from Continuing Operations 2,947,520.00 Discontinued Operations T Loss on Operations, Net of Applicable Tax 4 109,800.00 I Loss on Disposal, Net of Applicable Tax 536,800.00 > (646,600.00) > Net Income / (Loss) T 1,825,120.00 Earnings Per Share ...... T Income from Continuing Operations 5.69
