The following are some items of the balance sheet for Hofa, Inc., for the year ended December 31, 2019.

1. Prepare a balance sheet for December 31, 2019. (8 marks)
2. If the company is to announce 10% stock dividends, how do think this will impact the balance sheet? (2 marks)

Finished Goods	$ 8,532
Current Maturities of Long-Term Debt	1,197
Accumulated Depreciation	8,957
Accounts Receivable	25,101
Sales Revenue	127,260
Treasury Stock	251
Prepaid Expenses	2,199
Deferred Taxes (long-term liability)	8,237
Interest Expense	2,410
Allowance for Doubtful Accounts	915
Retained Earnings	18,951
Raw Materials	9,576
Accounts Payable	19,021
Cash and Cash Equivalents	8,527
Sales Salaries Expense	872
Cost of Goods Sold	82,471
Investment in Unconsolidated Subsidiaries	3,559
Income Taxes Payable	8,356
Work In Process	1,984
Additional Paid-In Capital	9,614
Equipment	41,905
Long-Term Debt	15,258
Rent Income	2,468
Common Stock	3,895
Notes Payable (short-term)	7,233
Income Tax Expense	2,461

Below is the income statement for Irwin Inc. in a single-step format.

Irwin Inc

Income Statement

For the Year Ended December 31, 2019

Sales	2,950,000
Rent Income	13,560
	2,963,560
Costs and Expenses:
Cost of Sales	2,265,120
Selling and Administrative Expenses	322,000
Interest Expense	46,589.00
Loss on the Sale of Plant Assets	14,950.00
	2,756,000
Income Before Taxes	$ 258,000
Income Taxes	111,555.00
Net Income	$ 146,000
Earnings per Share	$ 7.30

Required:

1.	Construct multiple-step format income statement. (6 marks)
2.	Recalculate the net income, but with the unusual loss removed. (2 marks)
3.	Why do you think the unusual loss is not considered extraordinary or a disposal of a segment? (2 marks)

Paragraph Styles The following are some items of the balance sheet for Hofa, Inc., for the year ended December 31, 2019. 1. Prepare a balance sheet for December 31, 2019. (8 marks) If the company is to announce 10% stock dividends, how do think this will impact the balance sheet? (2 marks) Finished Goods Current Maturities of Long-Term Debt Accumulated Depreciation Accounts Receivable Sales Revenue Treasury Stock Prepaid Expenses Deferred Taxes (long-term liability) Interest Expense Allowance for Doubtful Accounts Retained Earnings Raw Materials Accounts Payable Cash and Cash Equivalents Sales Salaries Expense Cost of Goods Sold Investment in Unconsolidated Subsidiaries Income Taxes Payable Work In Process Additional Paid-In Capital Equipment Long-Term Debt Rent Income Common Stock Notes Payable (short-term) Income Tax Expense $ 8,532 1,197 8,957 25, 101 127,260 251 2,199 8,237 2, 410 915 18,951 9,576 19,021 9,527 UN States Focus a ** S