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The following details are from the records of Timberland Corporation for the fiscal year ending June 30, 2021: Accounts receivable: $97,000 Retained earnings, July 1,
The following details are from the records of Timberland Corporation for the fiscal year ending June 30, 2021:
- Accounts receivable: $97,000
- Retained earnings, July 1, 2020: $320,000
- Gain on operation of discontinued operations (before tax): $85,000
- Sales revenue: $1,400,000
- Cost of goods sold: $760,000
- Selling expenses: $140,000
- Cash: $75,000
- Common shares (30,000 common shares outstanding): $300,000
- Dividend revenue: $18,000
- Inventory: $130,000
- Unearned revenue: $5,000
- Building: $450,000
- Interest expense: $22,000
- Administrative expenses: $170,000
- Bonds payable (maturity 2028): $190,000
- Accounts payable: $85,000
- Loss on disposal of discontinued operations (before tax): $95,000
- Depreciation expense: $58,000
- Loss on sale of equipment (before tax): $12,000
Timberland Corporation is subject to a 28% income tax rate.
Requirements:
- Prepare a multiple-step income statement in good form for Timberland Corporation for the fiscal year ending June 30, 2021.
- Compute the earnings per share if needed.
- Calculate the net profit margin.
- Determine the income from continuing operations.
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