rcise 13-17 me statement gories 3. Did Roak successfully use financial leverage in the current year: company completely out of the wholesaling business. The company still operates its retail outlets. A list- In the current year, Randa Merchandising, Inc., sold its interest in a chain of wholesale outlets, taking the ing of the major sections of an income statement follows. A. Net sales less operating expense section B. Other unusual and/or infrequent gains (losses) Chapter 13 Analysis of Financial Statements 523 C. Taxes reported on income (loss) from continuing operations D. Income (loss) from operating a discontinued segment, or gain (loss) from its disposal Indicate where each of the following income-related items for this company appears on its current-year income statement by writing the letter of the appropriate section in the blank beside each item. Section Item Debit Credit 13-17 $2,900.000 230,000 1. Net sales 2. Gain on state's condemnation of company property 3. Cost of goods sold 4. Income tax expense. 5. Depreciation expense 6. Gain on sale of wholesale business segment, net of tax 7. Loss from operating wholesale business segment, net of tax 8. Loss of assets from meteor strike $1.480,000 217.000 232.000 775,000 444,000 640,000