Required: Prepare a multiple-step income statement for the Reed Company for 2018, showing 2017 information in comparative format, including income taxes computed at 40% and EPS disclosures assuming 500,000 shares of common stock. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.) REED COMPANY Comparative Income Statements For the Years Ended December 31 2018 2017 Sales revenue Cost of goods sold Gross profit (loss) Operating expenses: Administrative Selling Loss from fire damage Loss from write-down of obsolete inventory Total operating expenses Operating income Other income (expense): Interest revenue Interest expense Total other expenses (net) Income from continuing operations before income taxes Income tax expense Income from continuing operations Discontinued operations: 0 0 0 0 2018 2017 00 Sales revenue Cost of goods sold Gross profit (loss) Operating expenses: Administrative Selling Loss from fire damage Loss from write-down of obsolete inventory Total operating expenses Operating income Other income (expense): Interest revenue Interest expense Total other expenses (net) Income from continuing operations before income taxes Income tax expense Income from continuing operations Discontinued operations: Income (loss) from operations of discontinued component Income tax benefit (expense) $ 0 $ Income (loss) on discontinued operations Net income Earnings per share: Income from continuing operations Discontinued operations Net income