Question

The following information is related to Sheridan Company for 2020. Retained earnings balance, January 1, 2020 Sales Revenue Cost of goods sold Interest revenue Selling and administrative expenses Write-off of goodwill Income taxes for 2020 Gain on the sale of investments Loss due to flood damage Loss on the disposition of the wholesale division (net of tax) Loss on operations of the wholesale division (net of tax) Dividends declared on common stock Dividends declared on preferred stock $999,600 25,500,000 16,320,000 71,400 4,794,000 836,400 1,268,880 112,200 397,800 448,800 91,800 255,000 81,600 Sheridan Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Sheridan sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year. Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49.) SHERIDAN COMPANY Income Statement For the Year Ended December 31, 2020 Sales Revenue $ 25,500,000 Cost of Goods Sold 16,320,000 Gross Profit/(Loss) < 9180000 Selling and Administrative Expenses 4,794,000 Income from Operations < 4386000 Other Revenues and Gains Interest Revenue $ 71400

Answer 1