The financial records of Dunbar Inc. were destroyed by fire at the end of 2012. Fortunately, the controller had kept certain statistical data related to the income statement as presented below. 1. The beginning merchandise inventory was $96,900 and decreased 20% during the current year. 2. Sales discounts amount to $24,600. 3. 29,200 shares of common stock were outstanding for the entire year. 4. Interest expense was $20,800. 5. The income tax rate is 30%. 6. Cost of goods sold amounts to $509,000. 7. Administrative expenses are 18% of cost of goods sold but only 8% of gross sales. 8. Four-fifths of the operating expenses relate to sales activities. From the foregoing, information, prepare an income statement for the year 2012 in single-step form. (Round earnings per share to 2 decimal places, e.g. $1.48 and all other answers to 0 decimal places, e.g. 2,520.) DUNBAR INC. Income Statement For Year Ended December 31, 2012 4-7 Presented below are selected amounts from the records of McGraw Corporation as of December 31, 2012. Cash $69,100 Administrative expenses 102,700 Selling expenses 84,500 Net sales 554,300 Cost of goods sold 268,100 Cash dividends declared (2012) 24,000 Cash dividends paid (2012) 19,900 Discontinued operations (loss before income taxes) 44,000 Depreciation expense, not recorded in 2011 32,800 Retained earnings, December 31, 2011 97,800 Effective tax rate 30% Net Income of 38500 (b) Prepare a partial income statement beginning with income from continuing operations before income tax, and including appropriate earnings per share information. Assume 19,300 shares of common stock were outstanding during 2012. (Round earnings per share to 2 decimal places, e.g. $1.48.) McGraw Corporation Income Statement For the Year Ended December 31, 2012