Income Statement and Retained Earnings

The Huff Company presents the following partial list of accountbalances taken from its December 31, 2016 adjusted trialbalance:

Sales (net)	$124,000			Operating expenses	$20,000
Interest expense	3,100			Common stock, $5 par	16,500
Cost of goods sold	56,000			Retained earnings, 1/1/2016	44,500

The following information is also available for 2016 and is notreflected in the preceding accounts:

The common stock has been outstanding all year. A cash dividendof $1.46 per share was declared and paid.

Land was sold at a pretax gain of $7,100.

Division X (a major component of the company) was sold at apretax gain of $4,600. It had incurred a $9,430 pretax operatingloss during 2016.

A tornado, which is an unusual event in the area, caused a$5,380 pretax loss.

The income tax rate on all items of income is 30%.

The average shareholders' equity is $90,000.

Required:

1. Prepare a 2016 multiple-step income statement for Huff. Roundearnings per share computations to two decimal places.

HUFF COMPANY
Income Statement (Multi-Step)
For Year Ended December 31, 2016
		$
		$
		$
Other items
	$
		$
		$
Results from discontinued operations
	$
		$
Components of Income		EPS
		$
		$

2. Prepare a 2016 retained earnings statement.

HUFF COMPANY
Statement of Retained Earnings
For Year Ended December 31, 2016
	$
	$
	$

3. Compute the 2016 return on common equity. Round to onedecimal place.

%