Question 1

The following information is related to Sarasota Company for 2017.

Retained earnings balance, January 1, 2017		$997,070
Sales Revenue		26,104,600
Cost of goods sold		16,185,500
Interest revenue		78,500
Selling and administrative expenses		4,733,500
Write-off of goodwill		825,900
Income taxes for 2017		1,405,900
Gain on the sale of investments		116,600
Loss due to flood damage		397,200
Loss on the disposition of the wholesale division (net of tax)		450,100
Loss on operations of the wholesale division (net of tax)		84,660
Dividends declared on common stock		263,100
Dividends declared on preferred stock		77,650

Sarasota Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Sarasota sold the wholesale operations to Rogers Company. During 2017, there were 481,300 shares of common stock outstanding all year.

(al) Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49.) SARASOTA COMPANY Income Statenent