80.2K

Verified Solution

Link Copied!

Income Statement and Retained Earnings 45,900 The Huff Company presents the following partial list of account balances taken from its December 31, 2019 adjusted trial balance: Sales (net) $124,000 Operating expenses $30,800 Interest expense 4,900 Common stock, $5 par 11,000 Cost of goods sold 64,000 Retained earnings, 1/1/2019 The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of $1.00 per share was declared and paid. 2. Land was sold at a pretax gain of $7,500. 3. Division X (a major component of the company was sold at a pretax gain of $4,690. It had incurred a $9,480 pretax operating loss during 2019, 4. A tornado, which is an unusual event in the area, caused a $5,370 pretax loss. 5. The income tax rate on all items of income is 30% 6. The average shareholders equity is 589.000, Required: 1. Prepare a 2019 multiple-step income statement for Huf Round earnings per share computations to two decimal places. HUFF COMPANY Income Statement (Multi-Step) For Year Ended December 31, 2019 HUFF COMPANY Income Statement (Multi-Step) For Year Ended December 31, 2019 Other items 000 OU Results from discontinued operations Components of Income Earnings per Common S 2. Prepare a 2019 retained earnings statement. HUFF COMPANY Statement of Retained Earnings For Year Ended December 31, 2019 inh 3. Compute the 2019 return on common equity. Round to one decimal place. %

Answer & Explanation Solved by verified expert

See Answer